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 [...]
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 [...]
In the past year we have seen associations face significant disasters. Hurricane Ian torn up associations in Fort Meyers and now California is flooding impact condominium and homeowner associations. Washington state dodged a major ice storm in December 2022 but it could have been worse. As a retired first responder (firefighter -EMT for 42 years) [...]
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 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 / [...]
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 major projects, unexpected repairs and other [...]
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 [...]
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 [...]
A question that we frequently get is “can we use reserves for Electric Vehicle Charging Stations”? The quick answer is no…. Reserves are intended for maintaining existing community assets. Once the stations are installed they can be maintained with reserves but not until then. These stations can consume quite a bit of power and not [...]
