Flush with Cash What You Need to Know About Surplus Funds

 In December 2008, the National Bureau of Economic Research announced that the  United States was in a recession that had started back in December 2007. The  official announcement was old news for most Americans.  

 As the dust continues to settle from the downturn, the silhouette of a reformed  economy is slowly becoming visible. In certain markets, real estate sales have  increased over the last 18 months, construction and capital improvements  projects that were put on hold have been green-lit, and the unemployment rate  in the metro New York area is receding.  

 That’s the good news. The bad news is that foreclosures and budgets remain a  significant concern for many homeowner associations, unit owners and managing  agents. Despite this reality, many boards still realize a budget surplus. Too  much money is never a problem, how best to manage it can sometimes prove  challenging.  

 Tough Times

 “A surplus should be rare if budgeting is based on a five year average of  expenses,” says Alvin Wasserman, director of Fairfield Property Services in Commack, Long  Island. “An influx of funds is more likely to come from refinancing or a certiorari  settlement,” he adds.  

 A number of variables could also contribute to a budget surplus. For example, a  capital improvement project budgeted from the previous year may have been  completed ahead of schedule and at a savings. Additionally, allotted monies for  snow removal might not have been used. This scenario played out last year. The  freak 2011 Halloween snow storm prepared people for a forecasted severe 2012  winter season; however, after that early surprise storm, there were hardly any  other major snow events.  


Related Articles

Financial Record-Keeping

Following the Money

FHA Eases Financing Regs

Good News for First-Time Homebuyers

NYC Residents Pay $5,633 in Annual Property Taxes

City Ranks Sixth Highest in the Nation