Ensuring Financial Stability and Long-Term Viability: The Importance of Reserve Study Updates
Community associations, condominiums, and homeowners’ associations (HOAs) play a crucial role in maintaining the integrity and value of properties. One key aspect of this responsibility is managing reserve funds effectively through periodic reserve studies. These studies provide a roadmap for financial planning …
Associations That Fail to Fund Reserves: A Risky Proposition
Introduction Community associations, including condominiums, homeowner associations, and co-ops, play a vital role in maintaining and preserving common areas, infrastructure, and property values. One essential aspect of their financial responsibility is funding reserves to cover future repair and replacement costs. However, there …
Funding Reserves: Component Method vs. Pooling or Cash Flow Method
Reserve funds are a vital financial component for various community associations. These funds ensure that these communities can cover the costs of long-term expenditures. There are different approaches to funding reserves, the component method or the pooling/cash flow method. Take a look …
The Vital Role of Reserve Studies
To begin, let’s clarify what a reserve study is and why it matters. Reserve Study Definition A reserve study is a comprehensive financial planning tool used by community associations, condominiums, and homeowners’ associations to estimate the future costs of replacing, and maintaining …
Florida Structural Integrity Reserve Study and Funding Requirements: Frequently Asked Questions
Introduced and signed into law in May 2022, Florida Senate Bill 4-D establishes statewide structural integrity reserve study and funding requirements for condominium associations and cooperatives. Below is a list of questions many property managers and Boards are frequently inquiring about. Does our current …