What is reserve planning and why is it important to the sustainability of a homeowner association (HOA)? Most people who purchase homes in HOAs have no idea what a reserve study is, or why it is important. In spite of the critical role reserve planning plays in the long-term sustainability of a common interest development … Continue reading Introduction to Reserve Planning
If you have been following the HOA Detective blog for any length of time then you know that yours truly talks a lot about the importance of reserve planning and funding for homeowners associations. To quickly recap, the position of the HOA Detective is that reserve planning and funding of a reserve account is the … Continue reading 2020 and Beyond: Mandatory Reserve Funding…Really?
In March of 2016 the Community Associations Institute (CAI) released a White Paper titled: Community Next: 2020 and Beyond - The Association Governance Model Panel Report....
Why is it important that the reserve study be prepared by an impartial, third-party provider? This is a question that many reserve study providers would just as soon not have to answer. It is also one that the industry itself has chosen to address in only a passing manner by requiring that the reserve study … Continue reading Reserve Studies: The Importance of Objectivity
"How do you tell a good reserve study from a bad one?" This is a question the HOA Detective is often asked during presentations and classes he teaches on financial due diligence. Considering that reserve studies and reserve study providers are not created equal it is a fair question to ask...Unfortunately there is no easy … Continue reading Reserve Studies Are Not Created Equal
Why do we say reserves equal sustainability? To answer this question we need to consider what purpose the reserve fund serves for a homeowner association (HOA). The reserve fund serves two primary purposes. The first is obvious: it provides the funds needed to pay for expenses related to the maintenance, repair and replacement of community-owned … Continue reading Reserves = Sustainability