What are the requirements for HOA bank accounts?

In Washington, Homeowners Associations (HOAs) are required to maintain financial accounts and keep them separate from other entities. Generally, HOAs must maintain at least one bank account. There are certain restrictions and requirements when it comes to HOA bank accounts. First, HOA’s must have a designated signer on the bank account, who is authorized to make decisions regarding the account. Second, the account must be in the name of the HOA and cannot be a personal account. Third, the account must be accessible and monitored by the board of directors, or the property manager or accountant the board contracts with. Fourth, HOA’s typically need to carry a minimum balance in their account. When it comes to record keeping and spending, HOAs are typically required to maintain records of payments and deposits, as well as all expenditures. Additionally, it’s important for HOA’s to create appropriate/legitimate invoices from all vendors that are paid from the bank accounts. Lastly, HOA board members must remain aware of all taxes, fees, and laws that may be associated with their accounts. The requirements for HOA bank accounts in Washington can help ensure that HOA’s maintain transparency and accountability with their finances and ultimately, the costs associated with running the organization. By following these requirements, HOA’s can ensure that their accounts and investments are managed properly.

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What are the requirements for HOA bank accounts?

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