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About Brian McCaffery

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So far Brian McCaffery has created 19 blog entries.

Construction Defect Funds and Reserve Studies

Many associations want to know if they receive a settlement from construction defect litigation how will the affect their reserve study.  This all depends on what components are included in the construction defect settlement.  If the components are common area components that are included in their reserve study this could affect their reserve study and [...]

By | February 13th, 2017|Reserve Study|Comments Off on Construction Defect Funds and Reserve Studies

The Cost of a Reserve Study

The cost of a reserve study is typically very small when you consider the annual budget of an association and the cost of maintaining their reserve components.  An average townhouse condo association of 100 units could have an annual budget of $500,000 and reserve components who’s repair and replacement cost are between $750,000 and $1,500,000. [...]

By | February 7th, 2017|Reserve Study|Comments Off on The Cost of a Reserve Study

Assembly Bill 968 and Reserve Studies

AB 968 changes California Civil Code Section 4775 beginning January 1st, 2017.   This bill basically states that if an associations CC&R’s and Governing Documents are not clear on who is responsible for exclusive use common areas that the responsibility will fall on the association.  An example of an exclusive use common area could be a [...]

By | June 8th, 2016|Reserve Study|Comments Off on Assembly Bill 968 and Reserve Studies

Escrow HOA Documents and Reserve Studies

When you enter escrow to purchase a condo you receive hundreds of pages of HOA documents.  These documents contain things like, CC & R’s, Bylaws, and HOA Budget.  One of the most important documents to review is the reserve study.  The reserve study tells the prospective buyer if the association has saved enough money to [...]

By | February 5th, 2015|Reserve Study|Comments Off on Escrow HOA Documents and Reserve Studies

Can Reserve Funds be used to Pay for a Component that is not Listed in your Reserve Study?

Reserve funds can only be used to pay for repair and replacement of common area components.  Reserve funds can never be used to add a new component to the common area.  So for example, you cannot use reserve funds to add a new playground to your HOA.  But if you are replacing an old playground [...]

By | January 15th, 2015|Reserve Study|Comments Off on Can Reserve Funds be used to Pay for a Component that is not Listed in your Reserve Study?

Should Plumbing and Pipes be Included in a Reserve Study

Many HOA clients often ask if plumbing and piping should be included in a reserve study. Some may say no because CAI national reserve study standards state that a component must have a predictable remaining life to be included in a reserve study. It’s true that trying to predict exactly when plumbing will need to [...]

By | June 24th, 2014|Reserve Study|Comments Off on Should Plumbing and Pipes be Included in a Reserve Study

Investing Reserve Funds

There are no official standards for how hoa’s must invest reserve funds. California Civil Code does state “The board shall exercise prudent fiscal management in maintaining the integrity of the reserve account…” It is the boards fiduciary duty to act in good faith and in the best interest of the association when investing reserve funds. [...]

By | May 9th, 2014|Reserve Study|Comments Off on Investing Reserve Funds

Should HOA Board Input be Used when Preparing a Reserve Study

Many clients often ask me if the board and/or property manger input should be used in preparing a reserve study.  My answer is absolutely.  The board/manager are very valuable sources of information for any reserve study provider.  The best way to get an accurate reserve study is to combine the knowledge and experience of a [...]

By | March 4th, 2014|Reserve Study|Comments Off on Should HOA Board Input be Used when Preparing a Reserve Study

California Civil Code 2014 Update and Reserve Studies

The Davis-Stirling Act has been completely reorganized effective January 1st, 2014. The majority of the changes are simply just renumbering of the sections. There are essentially no changes to the reserve study requirements. The Civil Code section numbers have changed. Most of the former reserve study requirements that were formerly located in section 1365 are [...]

By | February 28th, 2014|Reserve Study|Comments Off on California Civil Code 2014 Update and Reserve Studies