When deciding whether a common area item belongs in a reserve study, refer to The National Reserve Study Standard four-part test: Part 1: See your association’s CC&Rs; to determine if the association is responsible to maintain or repair domestic water lines. Part 2: Typically water lines are considered “Lifetime” components and therefore would not pass…
When it comes to adopting an operating budget, reserve contributions are far down on the list of items to include. A typical operating budget will include things like; utility bills, insurance premiums, landscaping maintenance, and management fees. Unfortunately, reserve contributions are viewed as something that can only be done if the association generates an end-of-year…
Do we have enough or too much money in our reserve fund account? This is a very common question board members and homeowners ask. In this article we will explain what percent funded level is and how to understand how it applies to reserve strength. First, if you don’t already have a Reserve Study, you…
This article provides a brief guide about hoa reserve fund laws. You will find answers to common questions such as: Is a reserve fund required? How can we spend reserve funds? Is there a law requirement for how much should be in the reserve fund account? HOA reserve fund laws vary by state. This article…
Dry Wells are designed to collect and dispose of storm water by allowing water to percolate into subsurface soils above the aquifer. All dry wells in Arizona must be registered with the Department of Environmental Quality. They are considered common area components and maintenance responsibility generally falls on the HOA. With regular maintenance and repairs, dry…
A Reserve Study is a budgeting tool that assess the financial and physical health of associations. One of the responsibilities of the Board of Directors, is to act in good faith and in the interest of and for the benefit of the association. This would include managing association financial matters today and in the future.…