|Re: re: hoa fees, reserve study||<– Date –> <– Thread –>|
|From: Robert (robertenocommons.org)|
|Date: Thu, 2 Feb 2006 10:55:57 -0800 (PST)|
Christine, Not to say you gave bad advice, it is possible to do a budget and reserve study without paying professionals. Here at Eno Commons we did our own reserve study. Fortunately we had Jessie who works at HUD to do a top-down study (I believe it was 2% of the project) and Laura who works at Self-Help Bank to do a bottom-up study. The dollar amounts matched! Money for our reserves is 40% of our $100/month/household HOA dues. I have forgotten how we initially came up with $50/month/household for the operating portion of our budget (but it has been reduced to $45/month/household. The remaining $15/month/household pays for capital improvements. It was initially $10/month/household and later increased to $15/month/household at the expense of the operating portion of the budget.) The HOA dues were initially $90/month/household and we added the $10/month/household capital portion in 1999(?). We never had an assessment. We have not had a dues increase since we added capital portion in 1999. The slight caveat: Yes we have had fundraisers. Yes, there was a proposal last year to increase the dues another $10/month/household but that did not pass. Yes, we probably should do another reserve study to see how our assumptions are holding up. -Robert Heinich Eno Commons Cohousing Durham, NC where the topic of associate membership for neighbors adjoining our site will be considered at our next monthly business meeting. ----- Original Message ----- From: "Christine Johnson" <manzjohnson [at] netzero.net> To: <cohousing-l [at] cohousing.org> Sent: Thursday, February 02, 2006 8:28 AM Subject: [C-L]_ re: hoa fees, reserve study > Amy Dwyer, Wasatch Commons Cohousing Community, Salt Lake City wrote: > "Could you tell me what your fees are, if they go up yearly and by how > much, what they cover, if there is a sweat equity component to them, > and are they flat fees or square footage based, or both?" > > I don't know that our budgeting assumptions would be useful to you. > For one reason, our costs will differ from yours even if have similar > improvements since we are in a different part of the country and > material and labor costs will differ. To calculate our first formal > operating budget, we are using a combination of historical and zero > based budgeting. Our initial budget was modeled on local cohousing > budget numbers and that budget was off the mark by quite a bit as a > result. So, in short, can't recommend using other's estimations. If > their numbers weren't close to true, yours will be even worse! > > We contracted for and are about to receive a preliminary reserve study. > We paid a team of engineers and reserve analysts a flat fee to > complete the work you are attempting to do on your own. IMO, > contracting for a formal reserve study is one of the best decisions our > community has made to protect everyone's financial interests (present > and future owners, present and future sellers and purchasers). I wish > we would have done an initial study as soon as our plans were accepted > by the city for approval. > > We will be working with the numbers provided in the preliminary study > to make any adjustments (for example: to remove an improvement, choose > not to replace an item included in the forecast, reduce or increase our > operating budget) and then following on the submissions (which we have > six months to compose), we will be provided the final report. We will > end up with a financial plan to fund our reserves over the next thirty > years . We may update it periodically, if needed, for a lesser fee. > > There are so many good reasons to go with a professional firm to do a > reserve study. There are way too many reasons to list here! A > excellent resource for information on community association financial > management is Community Associations Institute at > http://www.caionline.org/ > > Christine Johnson > Stone Curves Cohousing > Tucson, AZ > > _________________________________________________________________ > Cohousing-L mailing list -- Unsubscribe, archives and other info at: > http://www.cohousing.org/cohousing-L/ > >
re: hoa fees, reserve study Christine Johnson, February 2 2006
- Re: re: hoa fees, reserve study Robert, February 2 2006
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