News and Resources

Is a Loan in Your Budget?

By: Linda J. Schiff, Senior Vice President, COMMUNITY ADVANTAGE®, Barrington Bank & Trust

The day to day operating requirements of an association generally receive the most attention when reviewing the annual budget and considering an increase in assessments. Everyone wants to make sure that the association has the proper insurance; that the property is well maintained; and other daily or weekly services are provided in an effective manner. If the day to day needs require an increase in assessments, most people will support the measure, because they see the need for these expenses routinely. Unit owners and board members alike tend to look differently at the budget when considering the annual contribution to reserves, and if the association should raise assessments to meet future needs for capital repairs and improvements (which may include roofs, balconies, siding, windows, parking garages, and elevators).

For a complete copy of this article, please contact Linda Schiff by phone at 847-842-7980 or by email at lschiff@communityadvantage.com.

January 2, 2006