Re: Questions about Reserve Amounts
From: Sharon Villines (sharonsharonvillines.com)
Date: Sun, 8 Jul 2018 11:30:13 -0700 (PDT)
On Jul 8, 2018, at 2:16 PM, Bob Leigh <bobleigh [at] twomeeps.com> wrote:
> 
> How have other communities coped with the argument that current residents 
> should not have to contribute to a new roof that they might not be around to 
> use?

Because a dilapidated property won’t sell and is expensive to live in. The 
reserve fund is actually named a Capital Reserve Fund. It is designed to 
preserve your capital — your investment. Every time something is not repaired 
or repaired cheaply, the value of the property goes down. No one (smart) moves 
in and those still there can’t afford to move because they can’t get market 
prices that would allow them to move.

Who would move into a community that needed the roof replaced and had no 
savings to do it?

A buyer should see a reserve study that informs them how well the condo is 
funded and whether they have done the things needed to properly maintain the 
property, and whether the HVAC is about to go out but there is money to replace 
it.

Money to replace should also include enough to replace at or above current 
market expectations.

We are saving for our own futures.

Sharon
----
Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org




Results generated by Tiger Technologies Web hosting using MHonArc.