Tag Archives: HOA Reserves

Take a Proactive Stand on Reserve Management Plann…

A Reserve Management Plan or Study, commonly called a RMP or RS, is a physical and financial analysis of assets within a common interest (CID) or shared ownership development; such as a timeshare resort, a fractional property, a condominium complex or condo hotel. Depending on the type of association that governs the property and the association’s declaration or by-laws, reserve analysis and funding requirements vary. Requirements for the establishment of association reserve accounts also vary from state to state, so it is a good idea to check with your state about the statutes.
The Reserve Plan or Study is simply a tool used by associations and management companies to determine what will be needed to maintain the property. Reserve accounts are established and maintained to hold funds for the long-term ordeferred maintenance and replacement of any assets that the associations is responsible for.

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Association Finances:

Understanding Your Community’s Financial Position in a Tough Economy

While it is always important to know where your community stands financially, it is especially important to understand the community’s financial status in an economy riddled with increasing expenses, higher delinquencies, and more bad debt write-offs. Following are several recommendations and standards for analyzing a community’s financial health:

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