Cohousing-L Mailing List: Re: Reserves versus operational repairs/replacements

[Kelly Bachman (happyvalleykelly]

Here's how we do it.  The general rule is that maintenance and repairs are
paid from operating funds, not reserves.  There are 2 exceptions. 1) When
the repair increases the life of the asset.  For example, if we repair a
boiler with an expected remaining useful life of x on the reserves
schedule, we would only charge the repair to reserves if the repair
resulted in a longer remaining useful life.  2) If the reserve study
component is listed as "repair/replacement" such as our wood decks, then
repairs come out of reserves.

Kelly for Bellingham Cohousing

On Mon, Dec 6, 2021 at 4:44 PM PatZy via Cohousing-L <
cohousing-l [at] cohousing.org> wrote:

> Anybody have good guidelines for what gets charged to reserves, and what
> gets charged to annual operations for repairs/replacements?  There seem to
> be several factors, including $ amount and frequency of repair.  We’re
> working on how to budget/account for each and it would be great to have
> clarity on what the parameters are for deciding.
>
> Thanks!
>
> Patzy Boomer
> Mountain View Cohousing Community (CA)
> _________________________________________________________________
> Cohousing-L mailing list -- Unsubscribe, archives and other info at:
> http://L.cohousing.org/info
>
>
>
>