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Since the building collapse in Florida I’ve seen posts online calling for sweeping legislation to require that associations fully fund their reserves. Before we overreact to an extremely rare tragic event, let’s all take a deep breath and think about a few things: First of all, more than 99.99% of associations are not ocean front [...]
All of our reserve studies contain the chart above with 6 different funding scenarios. This is a very helpful tool when an association is planning their budget. The chart shows 6 different reserve contributions for the upcoming year. It then projects what their percent funded will be for the next 15 years for each contribution. [...]
In 2019 SB 326 was passed which requires HOA's and condominiums to inspect their balconies at least every 9 years. The findings of the inspection must be incorporated into the reserve study. In some cases if the inspector finds damage repairs will need to be made. Since this is still a brand new law there [...]
Unfortunately, many aging condominiums lack adequate financial reserves. It is essential to building up reserve funds to plan for expected and unexpected repairs and maintenance in the future. HOAs (Homeowner Associations) can’t control personal financial matters, but they must maintain adequate financial reserves for the the community they represent. Reserve studies help condominium associations learn [...]
If you live in a development with a HOA (Homeowners’ Association) you usually pay a fee to help it keep up with maintenance where you live. This can include minor things like landscaping and also major issues like plumbing problems. The type of maintenance varies depending on what your living space is like and where [...]
It is essential that every group or person responsible for a property conducts a reserve study. A reserve study calculates the potential costs of repairs against funds the capital kept in reserve. This makes sure that funds available to meet any repair costs. Every person or group responsible for a property should carry out a [...]
The answer to this question is not a simple yes or no. Every year associations should review their reserve study and evaluate all components with a zero remaining life. But it may not be necessary to replace all of them right away. An important question to ask if you are not going to replace the [...]
Conducting a reserve study is essential for every homeowner's association. A reserve study consultant provides a vital service for HOAs centered on condominiums. They look at the funds the HOA has available and ensure these are enough to maintain communal areas. This is not only important; in California, it is required by civil code. San [...]
A great reserve study results in a funding plan which meets the National Reserve Study Standards. This means that sufficient funding is available when repairs and replacements are needed. The financial responsibility of contributions should be equally divided among owners, at a stable rate over time. The funding plan should also be fiscally responsible. To [...]
