Re: Reserve Studies
From: Dahako (
Date: Wed, 9 Aug 2006 04:29:52 -0700 (PDT)
Hi -
Another way of thinking about reserve funds is that they are a way to make  
sure that the people who are "using up" a community resource, like the  
commonhouse roof or the access road are the people who pay for it.  So, as  you 
in a community, you are paying each month in your condo or HOA fee for  the 
wear-and-tear happening while you are there.  When a physical  resource is 
completely worn out, then the accumulated financial resource is  available to 
re-make the physical resource and the cycle starts again.   That way, the total 
value of the physical and financial resources available  never wanes.  It is 
actually very elegant.
In my opinion, making the balance of community resources decrease is not  
only selfish and irresponsible, it isn't very "cohousing".  Most  communities 
about taking care of each other and stewarding resources.   To me, this 
doesn't mean just in the now, but through time.
Where state law allows, groups can do what Laura Benedict of Self-Help  
Credit Union taught about at the national conference and borrow from the 
(and repay with good interest) to do additional capital projects.  This  
practice actually leverages the reserve to increase total community physical 
financial value.
Jessie Handforth Kome
Eastern Village Cohousing
Silver Spring, Maryland
"Where my 15-year-old kept calling me at work yesterday because she has  
decided to learn to cook more things so she can really help on cooking teams 
not just do prep and clean-up.  So, yesterday, she made brownies and two  
quiches (ok, so the crusts didn't really come out, and they were actually  
timbales).  Today, I hope she cleans her room. . ."

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