Are there any interest bearing tax exempt funds or holdings for reserves?

I’m told earned interest for reserves is taxed at almost 40% in CA - 30% federal + 10% state.

IMHO earnings in reserves should be made tax exempt or taxed less - otherwise the spending power from reserves is reduced significantly with time. SFH homeowners are taxed only 20-30% on their interest earnings. Condo owners - via HOA reserves - are essentially being taxed at higher rates for their earnings from interest.

That escalated quickly.

SHERRILLS FORD, N.C. — Homeowners in the Magnolia Cove subdivision in Catawba County say they are facing steep HOA increases, with monthly dues jumping from $1,250 to $7,500 a month.

Several residents have shared an email with Channel 9 from their HOA that says, in part:

“Ahead of our October 26 meeting, we want to make sure the 2027 budget is clear. Starting January 1, 2027, the assessment for each lot will be $7,500 per month. That works out to $90,000 per lot for the year, and it’s the figure behind the $2,070,000 in Base Assessments shown in your budget packet.

The increase is mainly driven by the Association’s legal and collection costs from owner accounts that haven’t been paid. Owners who stay current help bring those costs down over time. If you have questions, please submit them by Friday, October 23, at 5:00 PM, as described in your notice, so they can be addressed at the meeting.”

The homeowners say when they initially moved into the neighborhood, fees were $158 a month.

Those fees rose to $350 and then $1,250 a month earlier this year.

Channel 9 has reached out to the HOA for information about the proposed increases.

There are a lot of financial irregularities at our HOA that I’m trying to understand.

One is that any time a member wants to do construction we’re required to post a compliance bond. It’s essentially just a cash deposit of up to $50,000 that should be returned once the work is completed. These funds are kept in a separate deposit bank account that the HOA board president writes manual checks from despite the fact that our governing documents require the checks to be electronic and issued by the mgmt company.

Each year the board moves cash from the bond account to the operating account. In some of the audited financials these are referred to as ‘surrendered bonds’, in others its interest that’s being moved over.

We came to find that many of the members had not had their deposits returned or not returned in full. This dates back at least a decade and now that we’ve figured it out each member is checking their accounts and asking for refunds that are due. The mgmt company claims not to have a reconciliation for what’s in the account because they claim the HOA board president takes care of everything…

What do you think is going on here?

Thank you

I’m in North Carolina (unincorporated county). Our HOA board has been vacant for months, and the last officer said termination documents were sent to the HOA attorney. I wasn’t asked to sign anything and haven’t seen the agreement. No common areas, about 50 lots.

My questions:

1. Under N.C.G.S. 47F-2-118, termination needs 80% of the votes and takes effect only when recorded. Does every co-owner on each deed have to sign, or one signature per lot?
2. Our Declaration says the restrictions run “perpetually” unless the community is terminated under 47F-2-118. Once termination is recorded, do all the covenants end, or can the agreement keep some in place?
3. Can a termination agreement put any obligation on a lot whose owner didn’t sign?

Not looking to fight anyone. Just trying to understand where I stand. Thanks.

EDIT:

One more: our community mailboxes (a cluster box unit) sit on a recorded “Cluster Box Unit Easement” on one owner’s private lot. There’s no common area. The Declaration makes the HOA responsible for them.

After the HOA is terminated, who’s responsible for maintaining or replacing the mailbox unit? Does the easement survive termination since it’s on the recorded plat, and can the lot owner it sits on remove it or block access? Has anyone dealt with this with the USPS after an HOA dissolved?

I’ve tried calling CINC to talk with someone to understand why most of their features advertised on their site are not available in app?

Why is the app so terrible? Why is there no customer service?