Re: Reserve funding levels
From: Sharon Villines (sharonsharonvillines.com)
Date: Sun, 21 May 2017 10:05:40 -0700 (PDT)
> On May 19, 2017, at 7:48 PM, Terri Hupfer <terri [at] phch.org> wrote:
> 
> Cohousing, is located in the Bay Area of California. Ev n though state 
> regulations in CA require a minimum of 10% fully funded for a reserve account 
> we have always kept ours significantly higher. I would love to hear from 
> other communities what their minimum reserve percentages are, particularly 
> those located in CA or in urban areas such as D.C. Or Boston that might have 
> similar costs for replacement.

Association Reserves is a big company that produces reserve studies across the 
nation. This gives them the ability to collect data and observe the effects of 
community practices. They have found that a community that is at 40% funded 
will be deferring replacements and major repairs that in the end will cost them 
even more. The typical levels in well managed communities is in the 70-80% 
range. 

One problem with this is that it assumes everything is in the study so you have 
a real number to start with. If you exclude too many items, underestimate 
costs, or overestimate useful life, you may think you are 80% funded, Excluding 
the complete roof replacement because it is is more than 30 years off, or 
deciding all your HVACs will last 50-60 years, won't be helpful when the bills 
come in.

Association Reserves has lots of resources on their website:

reservestudy.com

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





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