Cohousing-L Mailing List: Re: What SHOULD I be worried about?

[Kathryn McCamant (kmccamant]

California Regs do not require any initial funding of the reserve fund.
When people close on their homes and start paying HOA dues, they start
setting aside a portion of those funds for the long term maintainence
reserves. Development budgets are so tight these days, I would hesistate
to add reserve funding out of the development budget.  But, I wholely
agree about the importance of having realistic reserve set asides as part
of your HOA dues from the very beginning, with renewed reserve studies
done regularly-- California regs require at least every 3 years.

Katie 

-- 
Kathryn McCamant, President, Architect
CoHousing Partners, LLC
241 Commercial Street
Nevada City, CA 95959
T.530.478.1970  C.916.798.4755
www.cohousingpartners.com





On 6/20/14 1:59 PM, "Sharon Villines" <sharon [at] sharonvillines.com> wrote:

>
>
>On Jun 20, 2014, at 4:41 PM, David Heimann <heimann [at] theworld.com> wrote:
>
>>      Another thing to make sure about is having strong reserve funds for
>>eventually replacing major property items such as the roof, heating and
>>hot water, kitchen equipment, walkways, asphalts, siding, etc.  This
>>includes strongly funding the reserves to begin with (even though it may
>>make for higher unit prices) and strongly replenishing the reserves each
>>year (even though it may make for higher condo fees).
>
>To add to what David said, keep track of how much things cost. This will
>be the foundation of the reserve study. The study will be based on Cost /
>UsefulYears * projected construction inflation - expected earnings on
>savings = amounts to be saved each year for that item.
>
>Some companies add all the yearly cost of all items and do projections
>based on that total. Others do projections on each item. I'm not sure it
>makes a difference. The shorter lived items will appear several times in
>a 50-100 year projection.
>
>The developer should build into the budget a deposit to start the reserve
>fund. I don't know what percentage of the construction costs this should
>be. Does anyone? Do the California Condo regs say anything about this?
>
>Sharon
>----
>Sharon Villines
>Sociocracy: A Deeper Democracy
>http://www.sociocracy.info
>
>
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