HOA Reserve Funding: Real-Life Lessons from 3 Associations
February 20, 2024 No Comments
HOA reserve funding decisions change everything. Look at three REAL communities to learn from their reserve fund wins and fails.
HOA reserve funding decisions change everything. Look at three REAL communities to learn from their reserve fund wins and fails.
Explore how to respond to your fellow board members’ concerns about funding reserves so you can make sure your community is taken care of!
Owning property within a HOA community offers the security of shared responsibilities. Yet, like every advantage, it brings with it the challenge of shared financial risk, particularly when it comes to your HOA reserve fund. Ignoring reserve funding is an invitation to these unpleasant surprises.
If we make a reserve expenditure “on schedule” (i.e., according to our Reserve Study), why does our Reserve Fund Strength (Percent Funded) drop? That’s a great question because it illustrates the difference between the calculation of Reserve Fund strength and paying for reserve expenses.
In the Reserve Study industry, the Percent Funded range of 70-130% is described as the “strong” range. So why shoot to be 100% Funded and not the lower (more attainable) target of 70% Funded?