Cohousing-L Mailing List: Re: Rate of increase in HOA Dues?

[Kelly Bachman (happyvalleykelly]

Our funding plan is this. We start with two goals for the reserves percent
funded. We want to be 70% funded in 30 years and no less than 30% funded in
any one of the next 10 years. If both of these goals are met, the increase
in reserve dues is 3%. If not, the increase in reserve dues is 3% plus the
CPI-U rate of inflation AND we do a budget amendment late in the year to
transfer half of the estimated operating surplus into reserves.

This funding plan was concensed not because everyone agreed, but because
everyone could live with it. Some would have liked to put more into
reserves and some less. This is our sweet spot.

As treasurer, I like this plan because it tells us what to budget for
reserve dues without having to discuss the issue freshly each year and
because I like to be able to check the box on mortgage applications that
says we have a funding plan and we follow it.

Kelly
Bellingham Cohousing
33 units built in 2000

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