THREE REASONS TO HAVE HOA RESERVE FUNDS

Every HOA has a reserve fund for a strategic way to plan for expected and unexpected repairs and maintenance in the future. Here are three reasons why…

It’s Not So Easy to Budget

Your elected board members should plan and budget for your reserves, but we’ve also seen this task to be daunting for some HOAs. It’s not something your community should ignore and if you see this happening, don’t hesitate to reach out to us for assistance in planning.

The “What If” of Your Reserves

Depending on your community, your HOA may have figured out the best and worst case scenario for those expected and unexpected repairs. If you have a pool you may want to adjust accordingly if you have huge turnouts and use during the summer. Or if you are hit with hard weather in the winter, you may assume some roof repairs. 

Do Your Homework with a Reserve Study

We recommend every HOA get a Reserve Study done to analyze repairs and replacements. This should be done yearly as inflation can really affect the budgets. Even if yearly repairs aren't needed, it’s important to plan accordingly in your budget. Realty Times gives us the math, “…if roof replacement costs $100,000 and the remaining useful life is 25 years, then $4,000 is required yearly to pay for the work when it's needed…Each year, the reserve fund needs to be adjusted by area inflation and the interest earned on the invested reserve funds.”

Remember, never hesitate to attend HOA meetings and ask questions if you want more detailed information about your community’s reserve funds. There is no pre-determined set of funds that go into a reserve fund, and it’s not mandatory to have one. What we find is that homeowners don’t like having a surprise assessment because their HOA didn’t plan for any expected or unexpected repairs.

If you believe your HOA needs more information regarding Reserve Funds, we’re here for you.

Source: Realty Times  What is a Reserve Study in your HOA 

ABOUT CRUMMACK HUSEBY PROPERTY MANAGEMENT
Our team of HOA experts and community managers always puts people first. We know you’re not just a board of directors but you’re a part of the community, working together with your neighbors. Crummack Huseby Property Management, Inc., treats you like a neighbor too, respecting your decisions and collaborating to create a unique homeowner experiences all year long. Our unmistakable team and unparalleled approach to HOA management services sets us apart. Let us help your community stand out. When you’re ready for us, we’ll be here for you. 
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