2023 was a big and pivotal year for our neighbors in the Townhome community.  After quite a lapse the HOA Board of Directors hired vendors to powerwash the townhomes and to paint the primary exteriors.  This was a major expense that had not been budgeted but the Townhome Reserves have sufficient funds available to afford the expense.  The Townhome owners spent $198,430 of the 2023 budget leaving the Townhome account with a negative balance projected for the end of the fiscal year, December 31, 2023.

Many of us may not realize this, but our community is a not-for-profit community governed by the NPO laws for being a 501 C2.  As a 501 C2, we are required to end each fiscal year with zero dollars in profits and losses.  With the projected loss of $166,312 (and might be higher by the end of December 2023), we will have to pull those funds from the Reserve Account for the Townhomes.  That account currently has $500,022.77 and when we remove the funds needed to rebalance the primary Townhome account that leaves the Townhome Reserves with potentially $333,710.72 left.  That is far too low to cover any large emergencies.

So, the Home Owners Association, the Board of Directors, adopted the plan suggested by the Board’s Treasurer, to replenish the Reserves with a five-year plan.  Each year the Board of Directors will need to approve the actual amount, but there will be a Special Assessment each year for the Townhome Owners.  By the end of the five years, the Reserve Account will once again be in solid shape.