A reserve study is one of the most valuable planning tools available to the Board of a homeowner association (HOA). It measures all HOA components that require repair and replacement within (usually) a 30- year projection period. It provides a schedule for performing each event, a budget estimate based on today’s cost, and a funding plan so the Board can anticipate the cost and gather the necessary money. In essence, a reserve study provides a playbook that the Board can use to ensure the existence and solvency of the HOA in the future.
The Reserve Committee was formed in June 2006 and it completed the first-ever CMHOA reserve study in August 2006. A written report and a video presentation, both of which summarize the reserve study and associated recommendations, can be downloaded using the links below.
Reserve Study Report
Video Presentation (requires free Quicktime Player)
The Board of Directors approved the following actions based on 2006 reserve study recommendations:
Increase homeowner dues 4.1% to $43.00 per month, effective January 1, 2007;
Dedicate a minimum of $35,000 per year for the Association reserve fund in each annual budget;
Appoint a standing Reserve Committee to monitor and readjust the reserve study prior to every Annual Meeting of the General Membership, and also whenever significant changes in economic or other impacting events might suggest such review and revision;
Instruct the Reserve Committee to immediately prepare a plan, based on the 2006 reserve study, for repair and replacement spending for the remainder of 2006 and for 2007, and present this plan at the September Board of Directors meeting; and,
Develop amendment to the CMHOA Bylaws that would create a standing Reserve Committee, and offer this amendment for consideration by the General Membership on the ballot for the 2007 Annual Membership Meeting.
The Reserve Committee will provide updated recommendations on an annual basis.
For more information about the Reserve committee, contact its chair.