Before a board votes to use reserves to fund a project they should ask three questions to determine whether or not to use HOA or Condominium reserve funds. Members should ask: Is this a maintenance project? Use HOA reserve funds for maintenance projects only. Painting the exterior of the building(s) is a great example of [...]
We have talked previously about reserve fund balances or percent funded. To help you better manage your HOA reserve fund balances, here’s a list of tips to take into consideration: Adjust the budget when needed. Most boards are afraid to increase dues just to fund reserves. Increasing dues incrementally over time is better than asking [...]
In Washington State do reserves have to be fully funded? It’s a great question - when you review the Washington Uniform Common Interest Ownership Act (WUCIOA) it really doesn't say how much an association needs to have. Fully funded is one of the most misused terms in our industry because there is not just one [...]
What is the 10% Rule There are two areas where condominium buyers may hear about the 10 percent rule: FHA Approval - FHA stipulates that any one single owner cannot own more than 10% of the units. This is for FHA approval which frankly I don't hear much about these days FHA / [...]
What is a Healthy Reserve Balance? We get this question in our office all the time - do we have enough money in reserves? HOA or Condominium associations need to keep track of how much money they have on hand at all times. This helps ensure that there will always be enough cash available for [...]
Before you can understand what reserves are, you must first know how a homeowners/condominium association works. An association takes on the responsibility of maintaining the community with the primary objective of protecting property values. Achieving such a feat is impossible without proper funding. But, where does an homeowners/condominium association get its money? Every association consists [...]
