Shouldn’t we Save Money Instead of Spending It?

Several HOA members have expressed reluctance to allocate dues toward neighborhood services, citing reasons such as saving for a rainy day or the perception that only a few members use certain services or common areas. As a 501(c)(4) non-profit corporation, it is not only necessary but imperative that we provide the services for which dues are collected. While the desire to save money is understandable, we must adopt a strategic approach that emphasizes transparency, clear communication, and long-term benefits to fulfill the obligations for which the association was established. We should strive to approach the budget in the following ways:

1. Provide Transparency on Expenses

• Provide a break down how dues are currently spent. Present a detailed report of where the money is going, such as maintenance, landscaping, utilities, pool expenses and security. This not only enhances the aesthetic appeal of the neighborhood but also reflects the overall care and attention given to maintaining common areas. Investing in proper lawn care ensures the community remains inviting and can positively impact property values.
• A properly maintained pool contributes to everyone’s property values by enhancing the overall appeal and functionality of the community. Well-kept amenities like the pool are seen as valuable assets, making the neighborhood more attractive to current residents and potential buyers alike. Regular maintenance ensures these amenities remain in good condition, helping to preserve property values and avoid costly repairs down the line.
• When services are well-maintained, property values often remain stable or even increase, which is in everyone’s financial interest.
• Quarterly or Semi-yearly newsletters are essential for maintaining effective communication within the HOA, even though the costs might be higher than desired. Here are key reasons why they are important:

1. Keeping Members Informed
   Newsletters provide a consistent and reliable way to keep all members informed about community updates, upcoming events, maintenance projects, financial reports, and policy changes. This transparency builds trust and keeps members engaged in the association’s activities.
2. Promoting Quorum for Officer Elections
   A well-distributed newsletter can encourage greater participation in elections by informing members about the importance of attending meetings and voting. It can help create awareness of key issues, introduce candidates, and highlight the need for a quorum, increasing the likelihood of reaching the necessary participation for official decisions.
3. Fostering a Sense of Community
   Regular communication helps foster a sense of belonging and community. By sharing news, recognizing volunteers, neighborhood events, or highlighting accomplishments, newsletters create a connection between the HOA board and its members, which leads to greater involvement and support.
4. Providing a Tangible Reminder
   A quarterly newsletter serves as a physical or digital reminder of the HOA’s ongoing work. Even if the costs are higher, the investment ensures that important information reaches everyone, including members who may not be actively following other communication channels.
5. Encouraging Feedback and Engagement
   Newsletters offer a platform for members to engage with the HOA, ask questions, or provide feedback. This two-way communication can lead to more active participation and help the board better understand the needs and concerns of the community. Surveys or questionnaires and feedback forms can be included to promote participation.

• Despite the associated costs, a newsletter is a vital tool for ensuring transparency, increasing member participation, and meeting the HOA’s goals, particularly when trying to achieve a quorum for officer elections. The more touchpoints you have with a homeowner, the more likely they are to become interested in getting involved. Regular communication through newsletters, community events, and updates creates opportunities for engagement, making homeowners feel informed and connected. When people feel they are part of the decision-making process and understand the value of their HOA, they are more inclined to participate in meetings, elections, and volunteer efforts, ultimately strengthening the community.

2. Communicate Long-Term Savings

• Maintaining services now prevents higher costs later. For example, delaying repairs or upkeep can lead to more expensive problems in the future.
• Cutting services or doing the bare minimum can result in diminished appearances, which can hurt the neighborhood’s appeal and decrease property values, ultimately costing more in the long run.
• Delaying repairs can lead to situations like the one we are now facing with the pool. While it’s no one’s fault, if the necessary maintenance had been kept up year after year, we might not be dealing with such a large-scale renovation project, or it might have been able to be accomplished in stages rather than a complete overhaul. Regular upkeep helps prevent minor issues from becoming major, costly repairs, and this is a prime example of why it’s important to address problems promptly.

3. Showcase Positive Outcomes

• Improvements or projects funded by dues that have had a positive effect on the neighborhood, such as repairs, new amenities, or enhanced security. Once the pool renovation project is complete, we will hopefully have a prized accomplishment to point to which will enhance the neighborhood as well as all our property values.

4. Negating the Need for Special Assessments Later

• By highlighting the budgeting process, spending money on yearly maintenance as well as setting back reserve funds to cover large expenses like pool maintenance, the association can avoid the need for special assessments later.
• We were fortunate with this upcoming pool renovation. The previous Boards were prudent with their spending and did an excellent job of saving money, which has spared us from needing a special assessment. However, a significant portion of those savings will be used for this renovation. Moving forward, we must be mindful not only to continue contributing to our reserves but also to ensure that we spend the necessary funds to properly maintain both the pool and other essential services provided by the HOA. Regular maintenance is key to avoiding major expenses in the future.

5. Legal and Bylaws Requirements

• Our HOA dues are not optional, and the association has legal obligations to maintain the neighborhood according to our bylaws, CCRs and Texas Law. These obligations include maintaining common areas, upholding standards, and ensuring the community’s well-being.
• By not maintaining the pool or providing lifeguards or at least proper oversight, we have not fulfilled our responsibility as good stewards of the association. Our primary purpose is to ensure the safety, upkeep, and proper management of community amenities. Neglecting these duties undermines the association’s mission and the value it is intended to provide to all members. It’s essential that we correct this moving forward to preserve the well-being of the community and the assets we share.