Tag Archives: major

Reserve Funds

 

One of the primary business duties of community associations is maintaining and preserving property values of homes and the common property.  To do this properly, associations must develop funding plans for future repair or replacement of major common area components, such as roofs, boilers, elevators, swimming pools, balconies, asphalt surfaces and decks.

An association has several funding options, including periodic assessments over the life of assets, special assessments at the time of replacement, borrowing funds when needed, a combination of the above or the most common method – and in many states the only lawful alternative: setting aside funds in a special category commonly called reserve funds.

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FL: Resident in condo building living with major mold issue for nearly a year

News items of national interest regarding Condominium and Homeowner associations, compiled by the Community Associations Network

A Collier County condo with so much mold it can be seen through the windows from the street! The county wants it cleaned up and so do neighbors who say it’s hurting their health, but now there’s a fight over who should pay.
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What Is a Reserve Study and why do we need one?

A reserve study is an in-depth evaluation of a property’s physical components and an analysis of its reserve funds. Based on a thorough on-site inspection, a reserve study details anticipated replacements or repairs to common-area elements and recommends annual reserve funding to cover capital expenditures for the next 30 years.

Reserve studies give community association managers, board members and property owners assurance that future major property expenses are identified early and that a funding plan is in place to pay for those expenses.

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