Common Mistake in Reserve Plans
A common mistake in Reserve Plans are leaving out long lived components and not accounting for them in newer communities such as subsurface utilities or windows. Technically everything should be considered in a Reserve Plan to be fair to current and future …
Transfer Fees
Using transfer fees for reserve funding can be a risky method of reserving. You can not bank on the actual amounts collected and are dependent on the housing market. …
FHA Reserve Study Requirements
A Condominium association needs to be on an approved list for an individual to obtain a Federal Housing Administration FHA-insured loan. A requirement that Reserve contributions represent at least 10% of the total budget. Associations claiming an exception will need to show …
Reserve Study Updates
Reserve Study Updates are recommended every 2 to 3 years. Alternative companies are an option if you were not completely satisfied with a previous reserve study. It can be well worth extra dollars to contract with a new provider that has more …
Level Funding Requirement
The Division of Condominiums, Timeshares and Mobile Homes DBPR’s recent interpretations of the Florida Administrative Code Rule 61B-22.0005 for a cash flow analysis be level reserve contributions to be considered fully funded …
Straight Line Funding
You need to be careful when computing reserves with the straight line method otherwise known as component funding. It is not as easy as it may seem. Things to watch out for are reserve components that are currently being replaced along with …
WAIVING OF RESERVES
The Florida Condominium Act provides that in addition to annual operating expenses, the budget shall include reserve accounts for capital expenditures and deferred maintenance. These accounts shall include, but are not limited to, roof replacement, building painting, and pavement resurfacing, regardless of …
What Should Reserve Funds be Used For?
Reserve funds can be used only for repair, maintenance or replacement of the parts of the property that the association is responsible for such as roads, roofing, siding, fencing, painting, and equipment replacement. Reserve funds are often misunderstood as a slush fund …
