Navigating the landscape of financial options is a primary responsibility for Florida community associations and property management companies. Choosing the right banking partner can pay off in a big way – resulting in significant improvements in operational efficiencies, far less errors, and creating an environment of transparency with financial information readily available. All of which lead to achieving goals important to all community associations – financial health, and satisfied, well-informed board members and homeowners.

This article highlights essential questions to ask your bank, helping you make informed decisions that protect your community’s assets and streamline your financial processes. Whether you’re considering switching banks or evaluating your current banking relationship, these insights will empower you to select a bank partner that understands the unique needs of Florida HOAs and Condo associations.

Deposit Accounts

• Do you offer accounts designed specifically for community associations’ operating and reserve funds?
• Do you offer FDIC coverage over $250,000 through programs like ICS or CDARS for large reserve balances?
• Are there any restrictions on fund placement or withdrawal limits for these programs?
• What are your account fees and interest rates on deposits?
• What is your process for obtaining board signatures on new accounts and at annual turnover?

When choosing a bank, ensure they offer specialized deposit accounts tailored for community associations and provide expanded FDIC insurance coverage through programs like ICS or CDARS to protect large reserve balances.

Carefully compare fees on accounts and treasury service products. Ask if there is a way to avoid these fees with the overall balances you maintain with the bank. Most association banks offer special interest rates for community associations to maximize your association’s earnings.

Don’t underestimate how important it is to partner with a bank that has a secure e-signature process to ensure ease of obtaining signatures each year at board turnover. An online signature process saves an incredible amount of time and headaches for all involved.

Payment Processing and Treasury Management Services

• Which property management software programs do you integrate with (e.g., CINC, Vantaca) for automated reconciliation and payment processing?
• Can we achieve all necessary financial tasks on our accounting software program, or do we need to log on to the bank platform?
• What payment options do you offer homeowners (ACH, credit card, lockbox)?
• Do you offer help with campaigns to drive adoption of electronic payments?
• Where are your P.O. boxes located to receive lockbox customer payments?
• Are there fees associated with payment processing and treasury management services?

Partnering with a bank that integrates seamlessly with your property management software saves time and reduces errors in payment processing. Most association banks will allow you to perform all necessary financial tasks within your existing accounting platform without having to log in to the bank.

Offering multiple homeowner payment options, including ACH, credit cards, and lockbox services, enhances convenience and cash flow. Additionally, inquire about the bank’s lockbox locations which can have an impact on speed of funds credited to your account.

Association banks such as Cogent Bank offer initial campaigns to maximize electronic payment adoption rates – thus improving collection rates and reducing administrative burdens.

Choosing a bank with strong treasury management capabilities supports efficient operations and improves homeowner satisfaction.

Fraud Prevention and Security

• What fraud protection tools do you provide (e.g., Positive Pay, ACH Positive Pay, multi-factor authentication)?
• What is the process for handling suspicious transactions?
• What is your response time for communicating fraud alerts?

Security is paramount when managing community funds. Choose a bank that offers robust fraud prevention tools such as Positive Pay and multi-factor authentication to protect against unauthorized transactions. Understand the bank’s protocols for identifying and responding to suspicious activity, including their alert response times and support availability.

Look for a banking partner who will help safeguard your association’s assets and provide peace of mind. Prioritizing security reduces risk exposure and enhances trust among board members and homeowners.

Association Banking Services

• Do you have dedicated association banking specialists who understand the Florida statutes governing HOAs and Condo Associations?
• Are they located in each market and available to attend in-person board meetings when it makes sense?
• How quickly can you resolve issues?
• What differentiates your bank from other association banks?

Specialized knowledge of Florida’s HOA and condominium laws is essential for a banking partner serving community associations. Look for a bank with experienced association specialists who are accessible locally and willing to engage directly with your board when needed. Responsiveness and issue resolution speed are a must, as is the bank’s ability to offer association banking products and services that set them apart from traditional financial institutions.

Lending and Project Financing

• What loan products do you offer for capital improvements or mandatory structural repairs under Florida laws – especially compliance with Senate Bill 4-D?
• Do you provide customized terms to match up with our funds designated to make monthly loan payments and minimize any large special assessments?
• Does the bank require collateral other than placing a lien on the association’s assessments?
• Do you offer Lines of Credit to be used for emergencies and unexpected expenses?
• Do you offer Insurance Premium Financing?

When planning capital projects or repairs, your bank should offer loan products designed specifically for community associations to help you stay in compliance with Florida statutes like SB 4-D – which will impact many Florida associations in 2026. They should offer customized repayment terms to match your association’s assessment income earmarked to make the monthly loan payment.

Make sure the bank has an expertise in project financing. It is typically ideal to structure the loan with a non-revolving line of credit initially to allow for draws to pay the contractor/s during construction. The balance at the end of construction period should automatically convert to a term loan. All loan terms should be committed up front – look for a fixed interest rate throughout the loan to ensure you can budget properly for repayment.

Selecting a bank with comprehensive lending and project experience can make the difference between smooth and timely project completion or not.

Transition Support

• What is the transition process if we move our relationship to your bank?
• How do you manage lockbox transition, homeowner notifications, and integration with existing systems?
• How involved does the bank get in helping with transitioning?
• What amount of lead time do you need for a smooth transition?
• How long does the transition take?

Switching banks can be complex, so choose a bank with a well-defined transition process that minimizes disruption. The bank should manage lockbox transitions smoothly, communicate effectively with homeowners, and integrate seamlessly with your current systems. Understand the level of support the bank provides during the transition, the required lead time, and the typical duration to plan accordingly and ensure a seamless changeover.

A bank that offers a hands-on approach during the initial onboarding process reduces the risk of costly errors, upset homeowners, and helps maintain operational continuity.

Compliance and Transparency

• How do you ensure compliance with Florida HOA and Condo association statutes regarding reserve funds and recordkeeping?
• Can you provide documentation for audits and annual financial reporting requirements?
• What options does the bank offer to allow boards and managers to access banking information on their own?

Compliance with Florida Statute 718 for Condo Associations and 720 for HOAs is non-negotiable. Your bank should have processes to ensure proper handling of reserve funds and transparent record-keeping. Additionally, the bank should provide user-friendly platforms that allow boards and managers to independently access banking information, enhancing transparency and control. Choosing a bank with strong compliance and transparency practices supports governance and builds trust within your community.

At Cogent Bank, We Welcome These Questions… and more.

Choosing the right banking partner is a vital component of securing your community’s financial future. At Cogent, we are proud to partner with you as your Association Banking experts with a hands-on approach to assist you ever step of the way – during the initial conversion to Cogent and throughout your banking relationship.

We offer deposit accounts designed for community associations including special interest rates on your reserve funds. At Cogent, you will experience seamless payment integrations, robust fraud protection products, flexible lending options, and firsthand transition support. We help simplify board turnover by using digital signature cards and granting current signers access to update online users and authorities. No more tracking down every board member to sign one form.

Our dedicated Association Banking Team works closely with boards and property managers to deliver personalized service and solutions that help make you look good as your community thrives. Don’t leave your association’s financial health to chance – reach out  today and experience the Cogent difference.

Disclaimer: The information contained herein is for informational/educational purposes only. The views and opinions expressed in this document may be those of the individuals and may not necessarily reflect those of Cogent Bancorp and its subsidiaries and affiliates, or the entities they may represent. Content contained herein may be used in connection with the advertising and/or marketing of products offered by Cogent Bank or Cogent Private Wealth. The material is not intended to provide or substitute for legal, tax, or financial advice or to indicate the availability or suitability of any Cogent Bank product or service. You should consult with a legal, financial, tax, or other appropriate professional(s) for your specific needs and/or objectives before making any decisions.