It’s Budget Season! Now What?



As a
n Association Manager, one of our most critical responsibilities is helping our Boards prepare a sound, forward-thinking budget. A well-prepared budget not only ensures the financial health of the community, but also reflects a proactive approach to long-term planning, maintenance, and homeowner satisfaction. The budgeting process may seem daunting, but with the right structure and a bit of prep, it becomes an opportunity to add real value and lead your Board through another successful year of management.
 

Here are some of the essential steps for creating an effective budget for your HOA or condo association: 

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HOA Budgets and Landscaping



Investing the time to find the right landscaping partner during budget season.

There is a financial aspect, as landscaping often eats up a large portion of the HOA’s budget, and the quality of that service directly impacts residents’ satisfaction and the property's overall value. Landscaping can represent a significant percentage of the total HOA budget, with estimates ranging from 25% to 75% depending on community size and expectations.

Investing the time to choose the right vendor, who not only fits the budget but aligns with the community’s values, can save headaches down the line. It’s about finding the right balance of cost, quality, and reliability. By carefully planning the budget and following a structured process for selecting and managing landscaping vendors, HOAs can ensure their communities remain beautiful and well-maintained while also safeguarding their financial well-being.


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Budgeting from a CPAs Perspective



Budgeting for
a community association can be challenging.  It requires balancing the desire to keep assessments low with the need to cover the day-to-day expenses and accumulate funds for future major repairs and replacements.  As auditors, we regularly compare association budgets to actual financial results Sometimes, the numbers line up well.  Other times, budgets fall significantly short—or, in rare cases, end up being more than necessary.  Here are some of the top budget-blunders we see:
 

  • Ignoring Bad Debts:  It’s common for associations to fail to consider bad debts in the budgetThe budget for assessment income is based on the assumption that all owners are going to pay their assessments when dueHowever, for many associations that isn’t the case Boards should consider the historical delinquency rates and include an appropriate bad debt expense line item in the budget.   



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Budgeting for Community Organizations



The annual budgeting process for a Community Organization
can incorporate three different budgetsYou have a replacement budget (Replacement Reserves), an annual budget, and a budget for non-annual non-replacement items (Operating Reserves)Some of these budget items may not apply to all associations. 
 

The budget can be prepared either by the Association Manager or by the Association’s Treasurer. 

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Managing Dirt, Navigating New Development: A Community Manager’s Guide


Developing a community is more than just breaking ground and laying foundations- it’s about shaping an environment where residents feel secure, engaged and invested. As a community manager, navigating new developments requires careful planning, effective communication, and strategic problem-solving to balance progress with sustainability.

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Get the most out of your community playground, safely!


Playgrounds are a wonderful addition to any neighborhood. Playgrounds help foster a sense of community by giving residents a convenient way to connect with neighbors while their children play and burn off energy—often year-round, thanks to Virginia's mild weather. Most importantly, playgrounds offer a space for kids to take risks and explore boundaries safely. 

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2025 Virginia Legislative Changes Affecting Community Associations



The Virginia General Assembly continued to take an interest in the important work of community associates in its 2025 session. We highlight below notable changes that may affect property owners’ associations and condominium unit owner associations.

These changes will take effect on July 1, 2025.

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Red Imported Fire Ants Are on the Rise - Here's What Your Community Needs to Know

They’re aggressive, persistent, and showing up in more places than ever before. Red Imported Fire Ants (RIFA) have become an increasing concern for communities across Hampton Roads. Despite their growing presence, infestations often go unnoticed until they’re widespread—causing costly damage, painful stings, and long-term control challenges. For HOA boards and community managers, awareness is the first line of defense. Let’s take a closer look at why fire ants are thriving, what signs to watch for, and how proactive action can protect your community.

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Dirty Feet

Particular times and events stand out in my mind as I mature (age; I’ll never grow up).  “Dirty Feet” is one of them. In a former life, I often attended meetings at the BASF plant in Anderson, South Carolina. In the lobby hung a banner that read: DIRTFTET. After numerous visits and much brainstorming, I was at a loss in determining its meaning. Not being shy, I finally asked.

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AI: The Newest Member of Your Management Team

Managing an HOA can sometimes feel like juggling flaming swords while riding a unicycle. Between handling homeowner complaints, organizing meetings, and keeping up with ever-changing laws, it’s easy to feel overwhelmed. Enter AI, your new best friend (after coffee). 

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Pond & Stormwater System Spring Maintenance: What Every HOA Needs to Know

As spring approaches in Southeastern Virginia, HOA communities must take proactive steps to manage their ponds and stormwater devices. These systems play a crucial role in managing runoff, preventing flooding, and improving water quality. However, without proper management, they can quickly become sources of erosion, pollution, compliance violations, and costly repairs. 

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Building Strong Vendor Relationships: Best Practices for Managers & Business Partners

 

Vendor relationships are at the heart of successful community association management. Whether it’s landscaping, maintenance, security, or financial services, the quality of service delivered to homeowners often depends on the strength of the partnerships between community managers and business partners. These relationships, however, don’t develop overnight. They require careful selection, clear expectations, and ongoing communication to ensure they remain productive and beneficial for both parties.

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The Evolving Role of Community Managers: Skills for 2025 and Beyond

 

As we step into 2025, the community association management industry continues to evolve rapidly. From technological advancements to shifting resident expectations, today’s community managers must be more adaptable, tech-savvy, and forward-thinking than ever before. The days of simply enforcing governing documents and coordinating maintenance are long gone—today’s managers are strategic leaders, financial experts, and customer service professionals all in one.

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Greater Los Angeles-Area Wildfire Responses & Resources for Homeowners

We write to you with heavy hearts as we witness the devastating impact of wildfires in Southern California. These fires have caused unimaginable loss, displacing families, destroying homes, and putting incredible strain on brave firefighters and first responders. 

We are deeply saddened to share that some longtime CAI volunteers along with many other members have been displaced, lost their homes, or seen their livelihoods shattered. CAI is committed to supporting all those affected by these tragic events and as they begin the journey of recovery and rebuilding. 

Advocating for Resources and Recovery 
CAI is actively working to ensure that government resources are available to affected communities. This includes advocating to obtain a presidential disaster declaration that would include provisions for debris removal from private roads in community associations. We are engaging with Gov. Gavin Newsom’s office and California’s congressional delegation to secure vital resources for recovery efforts. 
 
We are collaborating with CAI’s California chapters, especially the Greater Los Angeles Chapter, and the California Legislative Action Committee to provide comprehensive information and resources for those impacted by the wildfires.
  
How You Can Help 
The Los Angeles chapter is leading efforts to provide immediate relief. The chapter outreach committee is calling on all members to support displaced families and the firefighters who are tirelessly protecting communities. 
 
Visit www.caionline.org for resources for those impacted and information on how you can help.
 
Strength, compassion, and generosity define the CAI community. If you know of additional ways to help, please share them with us.  

Thank you for your kindness, care, and commitment for our members, colleagues, friends, family, and neighbors in the Los Angeles area.
  
Stay safe and take care.
Melissa Ramsey, CMCA, AMS, LSM, PCAM
President, Community Associations Institute


Thomas M. Skiba, CAE
Chief Executive Officer, Community Associations Institute

CTA BREAKING NEWS: Filing Requirements Reinstated with Deadline Extensions

On Dec. 23rd, the Fifth Circuit Court of Appeals granted a stay over the injunction issued by the U.S. District Court for the Eastern District of Texas earlier this month, and issued a court order reinstating the January 1, 2025, beneficial ownership information (BOI) filing deadline under the Corporate Transparency Act (CTA) for applicable community associations required to file under federal statute.

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Corporate Transparency Act Blocked Nationwide by Texas Federal Judge

On Dec. 3, the U.S. District Court for the Eastern District of Texas published a decision in the matter of Texas Top Cop Shop, Inc., et al. v. Garland, et al. issuing a preliminary nationwide injunction against the Corporate Transparency Act (Act). 

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Brand New: The Return of Currents...Jr.!

Look What's Back!

Currents is returning as Currents Jr., a triannual e-newsmagazine!

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Strengthening Our Community Through Volunteerism

Strengthening Our Community Through Volunteerism

Our community thrives when its members come together with a shared goal of making a positive impact. Whether you’re passionate about supporting vulnerable animals, mentoring youth, or helping families in need, Hampton Roads offers countless opportunities to give back. Volunteering not only enriches the lives of those we serve but also fosters a stronger, more connected community. Every act of service, no matter how small, contributes to building a compassionate and thriving environment for all.


Hampton Roads Community Action Program (HRCAP):

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Are You Prepared for Hurricane Season?

Don’t wait until a hurricane is imminent: Proactively prepare before the next hurricane to help keep your organization, employees and yourself safe. 

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The Virginia Condominium Act Turns 50

While the recently celebrated Independence Day, that is not the only special occasion this summer. July 1 is the day that most new laws in Virginia take effect. The Virginia Condominium Act (the “Act”) was enacted on July 1, 1974. It superseded the Horizontal Property Act, which was enacted in 1962. Condominiums are purely “creatures of statute” meaning that without the laws permitting them, they would not exist. In other words, they are a legal entity created by statute. The Act is a legislative marvel, crafted by deep thinkers and innovators. It was a new breed. 

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