Managing Your Condo Association Reserve Fund

There are a lot of considerations that go into managing your condo association reserve fund, and one of the most important tools at your disposal are your condominium reserve studies. Your condominium needs regular upkeep from time to time, and you can’t just hire a handyman or do the job yourself. Instead, you need to make sure that your association has funds on hand in the condo association reserve fund, and that means making good use of condominium reserve studies.

Condominium Reserve Fund Studies give you a good idea of when common areas will need upkeep and repair, and how much that will end up costing you. This allows you to manage your condo association reserve fund properly, raising association fees and managing expenditures responsibly. A reserve study is conducted by an engineer who assesses the common elements of your condominium and then create a funding plan to make sure that adequate money is available for all roofs, roadways, etc. when repairs become necessary. Condominium reserve studies are a vital part of your budgeting process.

You should keep in mind that your condo association reserve fund needs to have more in it than just the common area repair money. You’ll find that most condominium reserve studies don’t include things that receive regular, consistent care like rain gutters and lawn mowing. Other areas that aren’t covered include things that are generally not anticipated to need maintenance, like the structure of your building itself. You need to manage your condo association reserve fund responsibility, which in addition to making use of reserve studies, means keeping money in the bank for a rainy day or for an emergency.

J. Hershey Architecture understands that your building has specific needs and issues that are particular to your area. That kind of attention to individualized care is what sets J. Hershey Architecture apart from other architectural engineering firms. Every community is different, and you want your architectural engineer to understand that and embrace the things that make your condominium community different.

Once you’ve got your capital reserve report, you can begin to make budgeting plans based on the recommendations you receive. This kind of careful planning will ensure that you balance the needs of the board with the needs of your membership. There are several stages of analysis which must be done in order to truly make the most of your capital reserve study, and the right firm can help you manage your money best.

 

Comply With FHA Reserve Study Requirements

The Fair Housing Association or FHA has many rules regarding condominiums, and recent changes in the laws have left some boards confused about what is required of them under federal law. You should know that an FHA reserve study is required by law, and your state may have more stringent requirements. The best way to find out about the requirements in your area is to get in touch with an experienced architectural engineering firm like J. Hershey Architecture. You can have your FHA reserve study conducted and get advice on the best way to manage your Homeowner’s Association, or HOA, reserve funds.

Aside from legal requirements, it is a smart idea to get your FHA reserve study done for other reasons. A capital reserve study will tell you exactly what kind of wear and tear the common areas of your co-op or condominium are experiencing. Not only that, but your FHA reserve study will lay out a time frame for budgeting for these repairs and let you know exactly how much you’ll need to have on hand and when. Needless to say, there are lots of good tips in your study about how to handle your HOA reserve funds.

An architectural engineer will conduct the FHA reserve study by studying all the areas of your co-op or condominium that require repair at certain intervals, like roofing or roadways, or even replacement. Typically, a reserve study will not focus on things that are not supposed to need maintenance, like building structure, or things that require regular, routine maintenance, like landscaping. This is what the reserve study is not the end all and be all of your HOA reserve funds management practices. You always need to make sure you have money in your HOA reserve funds for unexpected expenses and emergencies. There are very definite risks when it comes to underfunding your reserves.

You need an architectural engineering firm that understands your unique needs and takes into account your community when conducting its survey. Every community is different and has different HOA reserve funds needs. By working with J. Hershey Architecture, you can be certain that the particular needs of your community will be balanced with the needs of the board, leaving everyone happy and well taken care of in the long run. Don’t make the mistake of trying to budget without truly understanding your reserve study. Rely on professional analysis to ensure that your financial future can be stable and sound.