wk1003mike/ShutterstockOften the root cause of those corner cutting horror stories is a failure of the HOA to set aside enough rainy day funds to cover capital expenditures. Whether it’s a condo or apartment complex where the HOA is involved with all exterior work or a single-family home HOA that needs reserves to deal with common areas and administrative costs, if the cash isn’t available when it’s needed, it’s only a matter of time until the whole house of cards collapses. This problem is so prevalent, the Kansas City Star has posited that it may be the next housing crisis.
Although DIYers tend to think of different tasks when it comes to “rainy days,” the only solution an HOAs insufficient rainy day fund is to boost the fees that homeowners need to contribute. That’s rarely popular, and can cause a problem of its own: skyrocketing fees.