A reserve study is a budget planning tool that provides a detailed evaluation of a homeowners association’s common area assets and an analysis of its reserve funds. Physical AnalysisA reserve study provider performs an on-site inspection to evaluate the physical condition and repair/replacement cost of the association’s major common area assets. Financial AnalysisA reserve study…
1. Laws regarding Reserve Funding Levels, Reserve Studies, and Reserve Contributions differ by state. Reserve Study Laws and Reserve Funding Legislation vary by state. In the absence of specific legislation regarding Reserve Funding, associations should refer to their governing documents (Covenants Conditions, and Restrictions) with the help of a qualified attorney specializing in HOAs. The following…
Introduction Homeowners Associations (HOAs) play a crucial role in maintaining property values, enhancing community amenities, and ensuring a high quality of life for residents. A well-executed HOA reserve study is an indispensable tool for achieving financial stability and long-term planning. In this comprehensive guide, we will delve into the intricacies of HOA reserve studies, shedding…
Capital improvements and reserve expenses are integral aspects of maintaining the longevity and functionality of homeowners associations (HOAs) and condominiums. It’s crucial to discern between the two, as each serves a distinct purpose in the financial landscape of community management. This guide aims to elucidate the key differences between capital improvements and reserve expenses and…
Should your HOA borrow from the Reserve fund? The short answer to this question is, “It depends.” In this article, we discuss the advantages (if any) and disadvantages of borrowing from the reserve account.Every state has different rules regarding borrowing from the reserve account. For example, in California it is possible to borrow from your…
Welcome to our in-depth guide on Reserve Studies, designed to be your go-to resource for understanding the intricacies of financial planning for your community. Whether you’re a board member, property manager, or a homeowner, this guide will provide valuable insights into navigating the complexities of Reserve Studies. Unlocking the Power of Reserve Studies Reserve Studies…
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.…