|HOA Dues Increase & Reserves||<– Date –> <– Thread –>|
|From: Sharon Villines (sharonsharonvillines.com)|
|Date: Fri, 5 Jul 2019 13:05:44 -0700 (PDT)|
This is a link to the California Reserve Study Guide which is very well written and explains the what and why of reserve studies. http://www.dre.ca.gov/files/pdf/re25.pdf I have not a clue why they don’t recommend a minimum funding. I suspect because they think then everyone would do the minimum and no more. But if you have a study, at least you know how far behind you are. The Association Reserves website that does studies in many states has a variety of publications plus a DYI reserve study program. They also have a sample study online. https://www.reservestudy.com/resources/ They assess the risk of having a special assessment at 51% there is no reserve fund. If 40% funded, 10% risk, and 80% funded, -1% risk. 70-100% funded is strong. The study establishes a base for the projected costs of replacing everything you own for the next 30-50 years, so this means 70-100% of the total projected cost. If you are not adequately funded, that will affect property values as well. People moving in will have to make up the deficit so the condo is worth less. Association Reserves also notes that when funds go below 40%, regular maintenance tends to be seriously deferred, costing more later. Sharon ---- Sharon Villines Takoma Village Cohousing, Washington DC http://www.takomavillage.org
Results generated by Tiger Technologies Web hosting using MHonArc.