Funding & Fiduciary Responsibility

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As operating costs continue to rise, from insurance and labor to materials and compliance, maintaining artificially low fees can put communities at financial risk. Industry experts emphasize the importance of consistent, incremental increases to avoid deficits, protect reserves, and prevent unexpected financial strain on boards and residents. 

Jessica Ruiz, Senior Vice President of Management for AKAM, highlights the growing complexity facing associations, particularly in Florida. “The majority of our associations are going through some type of capital improvement right now,” says Ruiz, “whether it’s driven by a recertification requirement, or just a project that has to get done that hasn’t been completed yet. We’re finding that a lot of associations don’t have the funds on hand to do these projects.”

With additional requirements like Structural Integrity Reserve Studies (SIRS), proper funding is not just best practice; it’s essential for long-term stability and even impacts a building’s ability to secure financing. 

By planning ahead, maintaining transparency, and aligning budgets with real-world costs, boards can better support their communities, avoid large special assessments, and ensure the long-term health and value of their properties.