About the Association’s Investment Policy

Just like homeowners, the association saves money to cover large future expenses—like new roofs. Because the association represents many homeowners, our savings are significant. We take advantage of that—up to a point—by investing the savings to earn a little extra money for the association. However, to protect the homeowners’ money, the association has an investment policy that guides the board in managing those investments.
Protecting the principle is the core of our association’s investment policy, and that requires the board to be conservative with the association’s resources. This protects the members from well-meaning board members who may have a high tolerance for risk or who believe themselves to be capable fund managers. In fact, the policy only allows the association deal with insured, licensed and bonded agents.
The investment policy requires the board to place all association funds in government-insured accounts or similarly protected investments, and it prohibits putting more money in one account than the Federal Deposit Insurance Corporation will insure.
And finally, the investment policy provides continuity from one board to the next, which ensures that association funds are managed consistently over time.