Reserves to the Rescue?

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Survive the current economic upheaval. But how? In normal times, the standard response to “Can we use Reserves to cover an Operating Fund shortfall?” is to advise not plundering their Reserves… those funds are already dedicated towards specific projects. But these are not normal times. Survivability of the association is the issue (paying essential bills). The roof still needs to be replaced in 5 years, but the insurance bill needs to be paid now! We believe the Reserve Fund is a very powerful tool that can be used to help the association survive a phase of temporary high delinquencies and not sacrifice the future of the association. But it must be done carefully.

Join Reserve Fund expert Robert Nordlund, PE, RS (from Association Reserves) and California attorney Adrian Adams (from Adams|Stirling PLC) for expert guidance on this subject. Our speakers will address current unusual times, and how the business judgment rule allows (and protects) a board working in the best interests of the association, even when going against “standard best practices”. We will address three topics:

Preserving cash (prioritizing Reserve expenses… delaying the ones that don’t matter)
Re-allocating cash (borrowing from Reserve contributions or the Reserve Fund, and ways to restore those funds in months or years), and
Saving cash (executing projects now that were scheduled later in the year, to take advantage of “softer pricing” from vendors).

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