8 Facts About Your Washington State Association CC&Rs Over the past 50 years we are seeing more properties that are part of an association which have a governing document called Covenants, Conditions and Restrictions (CC&Rs). CC&Rs are rules and limitations that govern a community whether they are in a multi-family building or freestanding home. Typically [...]
What is the Fannie Mae 'unavailable condo and co-op list'? Did you know condo associations can land on the list if it has violations related to structural or mechanical repairs that need to be completed? Imagine a Pacific Northwest condo association that certain lenders won’t touch: It could be a nightmare situation for a buyer, [...]
Key takeaway: A structural integrity reserve study (SIRS) is a non-invasive, visual inspection of critical infrastructure that relates to the safety of a building. Washington's Condominium Act does not require structural or engineering inspections currently but its very possible that with Florida changing its requirements after the Surfside Condominium collapse that could change. However Fannie May [...]
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 [...]
Simply put, a Capital Needs Assessment (CNA) is a road map to understanding the life expectancy and cost of major items needed to maintain a property. Many public funding sources require non-profit organizations to have CNA's to prove they have the funds to maintain the properties they have. Our inspectors focus on providing a detailed [...]
Reserve studies are a crucial part of financial management for community associations. Despite this, some communities are hesitant about performing one. The following outlines five misconceptions about reserve studies. Misconception 1: Reserve studies are too expensive The cost of a reserve study typically ranges from $2,000 to $5000, depending on the age and complexity of [...]
What is the Lifespan of a Condominium Reserve Study? Today we have client associations who only sign up for us to do a single reserve study and then we don't hear from them for years. The board make think it is being conservative but in reality they are operating using old data as a guideline. [...]
Can HOA capital improvements be paid for from reserves? For purposes of this question we are defining HOA capital improvements as the expenditure of funds for new, not previously existing, components. We frequently get this question from newer clients who usually will have what they consider a surplus in their reserve account. Member look at [...]
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 [...]
