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Older Condos Part 1 Q&A eBook

The collapse of Champlain Towers South, a 12-story condominium association in Surfside, FL, captured the nation’s attention because it was so unexpected and so deadly. In the midst of so many unanswered questions about what led to this tragedy, Association Reserves’ goal is to help associations respond effectively, and rise to meet the specific challenges of maintaining properties as they age. On July 28, 2021, a panel of four industry experts were brought together to address key issues and best practices so managers, board members, and homeowners can respond appropriately, making the present less stressful and the future more secure for their associations. The content of this eBook consists of questions asked by the webinar attendees and answers provided by our expert panel.

Sample Reserve Investment Policy

Provided as a courtesy by Association Reserves. Please customize as appropriate and review with appropriate legal and accounting professional counsel

Sample Reserve Policy

Provided as a courtesy by Association Reserves. Please customize as appropriate and review with appropriate legal and accounting professional counsel

What Makes My Percent Funded Change?

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.

Why are Interest and Inflation Important?

Interest earnings bring income to the association that inflation takes away. But do they offset each other? Well first, it helps to understand the difference between the two.

Straight Line vs Cash Flow Reserve Funding

The scope & schedule of an Association’s reserve expenses are defined in the Reserve Study’s Component List. But once the Component List has been established, should the Reserve contributions necessary to fund those expenses be calculated using the “Straight Line” Method (officially called the Component Method) or the “Cash Flow” Method (sometimes called the “Pooled” Method)?