Glossary
What is an operating fund?
The association's working account: the dues coming in and the recurring costs going out, from landscaping to insurance to the manager's fee.
In Havn
Every entry in Havn carries a fund, so the operating fund, the reserve fund, and any special assessment never blur together on the balance sheet.
HOA accountingThe operating fund pays for the year's ordinary expenses and holds the regular assessments that cover them. It is separate from the reserve fund, which is set aside for future replacement, and from any special assessment fund. The operating budget is the one owners vote on or receive each year.
Keeping the funds apart is more than bookkeeping: borrowing from reserves to cover an operating shortfall is restricted in several states and must be repaid, and auditors and lenders look for it.
Keep Reading
Guides
- How to Read HOA Financial StatementsFour pages a month tell a board everything about the association's money.
- How to Create an HOA BudgetAn association budget is a short document with one hard number at the end: the assessment per home.
Templates
- HOA Dues Increase and Special Assessment Notice TemplateA free HOA letter template for a dues increase or a special assessment: the new amount and when it starts, why, the payment schedule, how to pay, and where to ask questions.
Laws and Documents
- HOA laws by stateEvery state's association statutes and resale rules on one map.
- HOA letter templatesFree notices, ballots, and letters a board can copy and send.
See how Havn handles it with your own community.
HOA management software with a homeowner portal owners actually use. Resale documents are included; the requester pays for each one.