Category: Reserve Study Basics

7 Things You Should Know HOA reserve funds

7 Things You Should Know HOA reserve funds

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…

Read More Read More

What is an HOA Reserve Study: A Comprehensive Guide

What is an HOA Reserve Study: A Comprehensive Guide

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…

Read More Read More

Capital Improvements vs Reserve Fund Expenses

Capital Improvements vs Reserve Fund Expenses

Capital Improvements: Capital improvements are projects where a new asset is added to the community. It is a project that, once installed, will then create operating expenses and future reserve expenses. A good example of a capital improvement type expense would be the installation of tennis courts when they do not already exist. Capital improvement…

Read More Read More

Should your HOA borrow from The Reserve Fund?

Should your HOA borrow from The Reserve Fund?

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…

Read More Read More

How to Read A Reserve Study in 3-Steps

How to Read A Reserve Study in 3-Steps

Over the years we’ve helped hundreds of clients prepare and plan for future expenditures with Reserve Studies. Reserve Studies serve as a “Road Map” to guide an association through the ups and downs of the uncertain future. However, understanding a Reserve Study is not always the easiest thing to do. Most Reserve Studies are approximately…

Read More Read More

How often should a Reserve Study be updated?

How often should a Reserve Study be updated?

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.…

Read More Read More

© 2023 Capital Reserve Analysts