Cohousing-L Mailing List: Re: Questions about Reserve Amounts

[Joseph Wheeler (wheeler76]

At Takoma Village, we have tried to gradually increase our reserve
contributions every year.

Our 2018 budget provides for about $235,000 in income from condo fees. (We
also have about $5000 income from voluntary contributions for guest room
use that go into our general operating funds, about $3000 interest income
on our reserves that we reinvest in the reserves, and contributions from
departing members that go into a separate "special projects" reserve.)

We contribute almost half of the annual income from condo fees to our
replacement reserve ($93,000) or maintenance reserve ($22,000). In our 18
years of operation, we have never had to ask members to pay a special
assessment.

With 43 units of varying sizes, our monthly condo fees range from $357-638
with the average being about $455. Of that average fee, about $223 would go
to reserve accounts.

We have commissioned a reserve study every 3-4 years and those studies
inform our budget process. Our most recent study recommended continuing to
increase reserve contributions about 5-6% per year to avoid risk of special
assessments.

The basic formula for calculating our condo fees is that 1/2 is split
evenly among all the units and 1/2 is variable based on square footage of
the unit.

-Joe Wheeler
Takoma Village Cohousing
Washington, DC

On Fri, Jul 6, 2018 at 9:06 PM, Ann Lehman <ann [at] zimmerman-lehman.com> 
wrote:

> Dare I open this conversation up? No need to share horror stories I'm just
> looking for what it's typical.......If you are ok with sharing....
>
> 1) I am curious what different communities put into their reserves each
> year (total & average per unit/per month) for reserves?
>
> 2) Is this amount = or greater than 10 % of your yearly budget?
>
> 3) Was this based on a reserve study?
>
> 4) If no reserve study what is based on?
>
> 5) How old your main buildings?
>
> 6) How is this divided up? Based on sq ft? The number of people?
> Combination? Household?
>
> Heads Up, I will be out of the country for a few weeks but thought I would
> get this conversation going so I could follow up when I return.
>
> Annie
>
> Ann Lehman
> Governance and Gender Consultant
> Zimmerman Lehman*forging futures for nonprofits
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-- 
peace, joe