I found this article thought-provoking. I read the article from the point of view of a professional who has been serving non-profit community association clients for over 30 years.
Yes, it is a Reserve Study prepared for your association, and you are the client. But in this case, the client is not always right.
A Maryland court recently entered a $1M judgment against the Tomes Landing Condominiums and its management company, MRA Property Management, for providing misleading budgets to prospective purchasers. Read more here.
In the live Q&A session after a one of last week’s webinars, one participant asked when it was best to perform a Reserve Study for their association… suggesting that he thought it would be best in the last quarter of a major component’s life.
I was recently contacted by an association explaining their strategy of not funding their Reserves according to the recommendation in their Reserve Study. They looked at that recommendation, then decided on a smaller contribution rate that they felt was reasonable (about half, they explained).
Sometimes a client will be candid with us, and ask for the recently completed Reserve Study to be revised “because the Board has decided to not do the _________ project this year as recommended, they plan to do it __ years from now.”
