No one enjoys when a product or service costs more than the last time they paid for it. However, sometimes it is unavoidable that the price of something--increases. All HOA/POA members will experience the increase in assessment fees from time to time after a new budget is created. Although it is not news that residents may want to hear, it is sometimes necessary to maintain the financial health of the community.

A HOA Board's duty is to the community as a whole, and by working to keep a well- maintained property in good working condition, the entire community benefits from pleasant surroundings and strong property values. As a part of a thriving community funding the budget through the payment of assessments to maintain the property or subdivision is shared by everyone. By instituting a comprehensive budget, the Association is ensuring that the best interest of all homeowners is the prime objective. Some Residents may simply not understand what goes into the planning of an association budget. The process can be extensive and typically includes the following key elements:

  • Analyzing all sources of income including HOA fees and miscellaneous income.
  • Researching the next year's expenses, including obtaining bids from vendors for contracts for services like pool maintenance, trash service and landscaping to ensure the community receives top-notch service at an affordable price.
  • Preparing for any increases in utilities.
  • Planning for reserve funds to cover capital repairs/replacements and analyzing trends in past budgets.
  • Comparing these areas until the budget balances, which could potentially result in increases in fees but ensures the well-being of the community.

The HOA Board works hard to ensure that they have considered all aspects of the community while creating the Annual Budget. Waccamaw Management, LLC is available to assist homeowners with understanding the importance of the association's budget and the reasoning behind fee increases. Open, honest, and respectful communication is vital to maintaining a positive relationship between all members of the community.