One of the most important responsibilities that Boardmembers and professional Managers face each year is the preparation of their Reserve Study. This document will not only reveal the current Reserve strength of the Association, but also the Funding Plan moving forward.
Boardmembers 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 company’s bill.
I recently read an article critical of using “% Funded” to measure the financial strength of an Association’s Reserve Fund. The author argued that since
This is a very common question. Most Boards want to know how their Reserves are doing, and, more specifically, how their Reserves are doing “compared
Winston Churchill said “Saving is a very fine thing, especially if your parents have done it for you!” But how much “savings” does it take
Many Boardmembers and Managers at this time of year are asking themselves this very question. With Reserve contributions making up 15% to 40% of the
