The Pillars of Clarity and Equity
Transparency: House Bill 1203 mandates Homeowners’ Associations (HOAs) to provide homeowners with a detailed breakdown of dues, fostering a deeper understanding and encouraging timely compliance.
Consistency: HOAs must implement consistent practices in notifying homeowners of their financial obligations, ensuring equitable treatment across the board and mitigating potential disputes.
Our experiences with new association clients have shown that unclear or inconsistent financial reporting can lead to significant issues, including unpaid balances that homeowners were previously unaware of. Addressing these challenges head-on requires a consistent collection process and a commitment to maintaining high financial standards. Establishing these practices can significantly reduce the amount of money owed by homeowners and streamline the resolution process for outstanding balances.
In light of House Bill 1203, our approach at Affinity Management Services underscores the significance of meticulous financial management. Beyond the peer review of financial statements for accuracy—under the guidance of a Director of Association Accounting who is a CPA—our overarching aim is to produce financial documents that are transparent, clear, and adhere to the utmost standards of compliance.
If you haven’t recently reviewed your association’s AR report, now is the time to do so. This crucial step can provide a comprehensive overview of your association’s financial standing and highlight any areas requiring attention. An updated, accurate AR report is not just a tool for financial oversight; it’s your first line of defense should any owner dispute arise regarding owed amounts. Ensuring that your financial records are in order, especially in light of the new requirements set forth by House Bill 1203, is more than just a best practice—it’s necessary.
For expert assistance in navigating the new requirements of House Bill 1203 and enhancing your HOA’s financial transparency, contact Affinity Management Services today. Our team is dedicated to helping your community achieve the highest standards of financial management and compliance.
