Board members and Managers often get themselves into a situation where they need to “sell” the value of regular Reserve contributions to their homeowners. It’s often a simple matter of fighting for budget dollars… Reserve contributions don’t keep the lights on, they don’t keep the Association properly insured, and they don’t pay the Management...
Commercial structures such as office and apartment buildings have planned obsolescence. When they get old, they are renovated, sold or torn down and rebuilt, which usually happens every 40 to 50 years. With our tax laws, it just doesn’t make economic sense to do otherwise.
There is no similar economic motivation for obsolete community associations. Condominiums and cooperatives may not be rebuilt or renovated without the approval of most of the individual shareholders. The number of association buildings that have not been properly maintained and are at the end of their economic life is growing; and, for too many, inadequate reserves have been set aside.
News items of national interest regarding Condominium and Homeowner associations, compiled by the Community Associations Network