Latest "Common Foundations" Article
As associations continue to discover the benefit of reserve studies and the long-range planning options they provide, some Boards also unearth some less-pleasant realities about their current funding—especially where siding is concerned. The idea that siding should last “as long as the building” or at least in the 40-year range has been a common misconception of Board members and property managers. The truth is, your building’s siding takes the brunt of the elements and can deteriorate more quickly than expected.
Some associations struggle with long-range vision, especially if it means spending large amounts of money. It’s not realistic for a board to plan for the exact property value 10 years down the road or rely on an outdated reserve study to predict the remaining useful life of all common elements. But making it up as you go along is clearly a recipe for disaster! What’s a board to do?
WINTER is drawing to a close, and your residents are eager to replace the snow shovels with tennis rackets. However, it’s not too late to implement an ongoing maintenance plan that will save your association time and money for many seasons to come.
View your association as a complete network with many important pieces working together, and ensure that each system is functioning properly.
One of the primary business duties of Community Associations is maintaining and preserving property values of the Association’s common property. To do this properly, Associations must develop funding plans for future repair or replacement of major commonarea components. A reserve study is a budget planning tool that identifies the current status of the reserve fund and establishes a stable and equitable funding plan to offset the anticipated future major common-area expenditures.