Our blog has discussed over the years the value of having a Reserve Study. It is, after all, one of the best practices an association can take to protect property values. None of us want to see the value of our home slashed and our home equity vanish. But that’s exactly what happens when maintenance [...]
What happens if our association reserves go to zero and we don't have money to do maintenance? Do we go bankrupt? An association that fails to make adequate contributions to their reserve fund are on a path to insolvency. Could the board take on significant debts that it can't pay for? Yes, they could. There [...]
How should we invest our Reserve Fund? We frequently get the question on what should we do with reserves especially with recent inflation increasing costs. Washington State's Laws governing associations (RCW 64.34) is pretty clear. They don't have any restrictions other than an association needs to have a separate reserve account. So the board has [...]
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 [...]
A reserve specialist is term used by Community Associations Institute (CAI) to describe a reserve certification they offer. Pacific Crest evaluated getting certified through Community Associations Institute (CAI) but since our Reserve Analysts already exceeded the CAI requirements we felt it didn't offer any benefit A reservist needs a blend of skills to be effective [...]
Do you find that your association constantly has unexpected repair or replacement costs that it doesn't have money budgeted for? Many association boards are afriad to raise dues to the levels needed to avoid special assets and hope nothings breaks until after they are off the board. We refer to this as the "head in [...]
Sellers and/or their agents are required to disclose what they know about the property under the laws of Washington State. Your real estate agent should be aware of disclosure laws but remember their underlying interest is to sell properties. I frequently see the seller's realtors wait until the last minute to provide the disclosure information [...]
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 [...]
Communities (Condo and Homeowner) special assessments are extra, “unusual” fees that you may be charged by your board under certain conditions. Most association managers and experienced board members cringe when the term special assessment comes up. These costs are usually levied by the board only in emergencies, such as in the case of unexpected large-scale [...]
In the past two years we have seen maintenance costs of our associations sky rocket. In light of this, HOAs and condos may need to pivot by adjusting the year-to-date budget, increasing assessment rates or levying special assessments. With increasing vendor rates, labor costs, and materials due to inflation, it’s also wise to proactively review [...]
