If an association needs more money than the budgeted general assessments provide, what action should they take?

When an association finds itself in need of additional funds beyond what has been provided for in the budgeted general assessments, the most effective and immediate course of action is to impose a special assessment or obtain a loan.

Special assessments allow the community association to collect additional funds from its members specifically to cover the unexpected shortfall. This method is generally straightforward and can be implemented relatively quickly, enabling the association to address urgent financial needs, such as emergency repairs or unexpected expenses.

On the other hand, obtaining a loan provides a solution for funding immediate requirements while allowing the association to repay the borrowed amount over time. This option can be particularly beneficial if the need for funds is significant and cannot be quickly raised through membership contributions alone.

While reducing expenses temporarily, conducting a new audit for savings, or waiting until the next fiscal year may seem like feasible strategies, these approaches generally do not offer the immediate financial relief that imposing a special assessment or securing a loan can provide. Reducing expenses might not always be possible without compromising necessary services, while waiting until the next fiscal year would delay resolution of pressing financial issues, potentially leading to larger problems down the line.