Many associations choose to obtain insurance against a possible significant loss: earthquake, flood, wind, or other major catastrophe. Due to the nature of this type of insurance, the deductible is often very large. While insurance is expected to cover the majority of a loss,
Reserve planning is done so owners can avoid getting hit with special assessments when predictable major Reserve expenses occur. By planning ahead, owners pay their “fair share” of the deterioration of major components on an even and stable ongoing basis. But how far ahead is it reasonable to plan? What do you do when you replace your 20-yr old shingles with roofing material “guaranteed” for 40 years, or rebuild your seawall with a concrete structure that is designed to last 50 or 60 years?
It is never appropriate for the association to set aside or expend association funds for assets the association is not responsible to maintain. If the fences belong to homeowners, expending association funds for maintenance would be inappropriate
The Reserve Component List forms the foundation of every Reserve Study, detailing the scope and schedule of all anticipated Reserve projects. Reserve Fund Strength (also known as Percent Funded) and the Reserve Funding Plan are both calculated based on the repair &
When the condition of one of your Reserve components has gone all the way from Good/New to Poor/Old and now has a Remaining Useful Life (RUL) of zero, the component should be repaired or replaced immediately, right?
I recently conducted a site inspection at a property with a large air conditioning chiller unit on the roof. The property was about 15 years old, and the chiller was original. A replacement chiller of this type should cost about $50,000 (installed) and last about 20 years.
