Actual figures

Understanding Actual Figures in HOA

In homeowner associations (HOA), ‘Actual Figures’ represent the real, exact numbers that relate to the association’s financial condition. They are not predictions, estimations, or approximations, but the precise values calculated and recorded based on actual data.

‘Actual Figures’ cover several areas, including the association’s income, expenditure, reserves, and liabilities. The income of an HOA generally comes from the homeowners’ dues and any other revenue-generating activities the association may engage in. The expenses represent the costs incurred by the HOA in managing the community, including maintenance costs, administrative costs, salaries of HOA employees, etc.

The reserves are the funds set aside by the HOA for future repairs, replacements, or unexpected costs. The liabilities of an HOA represent the financial obligations the association has towards other entities, such as loans or dues payable to service providers.

Understanding ‘Actual Figures’ is crucial for HOA board members as it provides an accurate picture of the association’s financial health. It allows the board to make informed decisions about budgeting, dues, expenditures, and other financial matters. It’s also important for homeowners to be aware of these figures to understand where their dues are going and how financially secure their HOA is.