6
Allocation Strategies
13
Debt Models
100%
Traceable
0
Rounding Errors
When your HOA takes out a loan or passes a special assessment, every owner deserves
to know exactly what they owe and why. CommunityPay's allocation engine computes
each unit's share using the method your board selects, documents every decision,
and maintains an immutable audit trail that survives turnover, disputes, and time.
Most HOA accounting systems fail catastrophically when communities take on debt.
Spreadsheets become the "source of truth." Interest accrues in someone's head.
Allocations get done by hand. Owners challenge their bills. Nobody can explain
the math. Sound familiar?
"How was my share calculated?" — No answer
Deterministic math with documented allocation strategy
Interest computed quarterly in Excel
Daily accrual with configurable day-count conventions
Payment applied to "whoever the treasurer remembers"
Automatic payment split: principal, interest, fees
Rounding differences scattered across units
Last-unit-absorbs-remainder policy — zero drift
"We don't have records from 3 treasurers ago"
Immutable event stream — every loan state change preserved
Your governing documents specify how costs should be divided. CommunityPay's
allocation engine supports all common methods, computes them deterministically,
and documents every allocation for audit.
Equal
Same amount per unit
Square Footage
Pro-rata by unit size
Ownership %
By ownership interest
Unit Type
Different rates by category
Bedrooms
Pro-rata by bedroom count
Custom
Board-defined schedule
Rounding Policy: Allocation math can create fractional cents.
Rather than scattering rounding errors across units, CommunityPay uses a
"last-unit-absorbs-remainder" policy. The final unit in the allocation absorbs
any sub-cent difference, ensuring the total always matches exactly — every time.
A complete loan management system purpose-built for community associations.
Event-sourced architecture means every loan state change is an immutable event.
Balance is computed from events, never stored directly.
HOA Loans (Liability)
Track loans your HOA owes. Term, revolving, construction,
bridge, balloon. Fixed or variable rates.
Resident Loans (Receivable)
Track what owners owe the HOA. Special assessments,
payment plans, recovery allocations.
Amortization Schedules
Generate or import schedules. Versioned and immutable.
New schedule on any change — never edited.
Interest Accrual
Daily computation with Actual/365, Actual/360, or 30/360
day-count conventions. GL posting at period close.
Payment Split Logic
Payments applied to fees, then interest, then principal.
Schedule-locked or schedule-flex modes.
Covenant Tracking
DSCR, reserve ratio, delinquency covenants.
Automatic evaluation with breach severity levels.
Loan Lifecycle:
Origination → Draw (if revolving) → Daily Accrual → Payment → Payoff
| | | | |
v v v v v
LoanEvent LoanEvent LoanEvent LoanEvent LoanEvent
(immutable) (immutable) (immutable) (immutable) (immutable)
| | | | |
└────────────────────┴──────────────────────┴────────────────┴────────────┘
|
v
LoanBalanceSnapshot
(SHA-256 verification hash)
When your HOA takes on debt, how does that translate to what each owner owes?
Recovery Plans connect HOA loans to resident loans through your selected
allocation strategy.
Recovery Plan Workflow
- Create plan linked to HOA loan
- Select allocation strategy
- Preview unit-by-unit allocations
- Board approval workflow
- Execute: bulk-originate resident loans
- Generate invoices automatically
Audit Trail
- Allocation strategy documented
- Unit data snapshot at execution
- Per-unit calculation preserved
- Board approval linked
- Immutable event stream
- Subledger ↔ GL reconciliation
Why This Matters: When an owner asks "How was my $2,847.33
calculated?", you can show them: the HOA loan amount, the allocation strategy
(e.g., square footage), their unit's square footage vs. total, and the exact
math. No spreadsheets. No guessing. No "the previous treasurer knew."
The debt subledger computes truth (principal, interest, fees). The general
ledger is the accounting system of record. They stay in sync through posted
journal entries with automatic reconciliation.
13 Account Roles
Notes Payable, Interest Payable, Loan Receivable,
Interest Expense, DFC, and more — all mapped correctly.
15 Transaction Types
Origination, draw, payment, accrual, fee, payoff,
rate reset — each with defined invariants.
Daily Reconciliation
Posted subledger balance must equal GL control account.
Mismatch triggers health alert.
| Invariant |
Enforcement |
| LoanEvent is immutable |
.save() override rejects updates after creation |
| Schedules are never edited |
New LoanScheduleVersion supersedes previous |
| Subledger = GL |
DebtReconciliationService runs daily, creates audit trail |
| All state changes are events |
Balance derived from event stream, never stored directly |
When you sell a unit, the buyer's lender and escrow officer need to know
about HOA debt. CommunityPay's disclosure packets include debt information
automatically.
Resale Certificate (RC)
Per-unit resident loan status section. HOA-level
loan obligations summary. Statute-compliant format.
Reserve Status Report (RSR)
Debt service impact on 30-year reserve projection.
Shows how loan payments affect funding adequacy.
Loan Disclosure (LDS)
Dedicated packet type with full amortization schedule,
event history, covenant status, subledger/GL reconciliation.
The allocation problem is a trust problem.
When owners can't verify their share of a special assessment,
they don't trust the board. When boards can't explain the math,
they don't trust the software. CommunityPay's deterministic
allocation engine and immutable debt subledger restore trust
through transparency.