Condominium reserve studies are conducted in order to contribute to the condo association understand what kind of upkeep and repair the common areas will need and when. These studies survey all the common areas of the condominium and predict what kind of repairs and replacements will be required, and to what extent those repairs and replacements will cost. This, in turn, allows the board to plan for annual input to the condo association reserve fund.
You can start to make budgeting plans for your condo association reserve fund, with the assistance of your reserve study. Your engineering firm will give you budgeting suggestions and help you start to make meaning of the recommendations made. The right firm should understand that your community’s needs are unique, and that your members and condo association have specific concerns about budgeting and repairs that may vary from other communities.
Whether you represent a homeowners association or a condo association, it is important that you understand just how vital reserve studies are to building up the ideal reserve fund for your specific needs. It’s also important to realize that no two HOA reserve funds will be identical. The Federal Housing Authority (FHA) has brought more scrutiny to homeowner associations reserve funds as a consequence of recent mortgage problems. The FHA typically requires a fund that’s at least 10 percent of the association’s budget to be employed on major capital expenditures or emergency repairs. Each situation differs considerably, based on specifics about the site, the development the age and other criteria.
Getting back on track to the topic of building reserve.
Reserve studies serve as a basis for decision making in regards to reserve funds. Without an accurate, in-depth study made by a reputable architectural firm, you’ll not enjoy the essential information on which to base your reserve funds.
Further Discussions About Building Reserve
J. Hershey Architecture offers straight-forward, custom service to every client, ensuring that the views they receive allows them to move on with budgeting and direction of the condo association reserve fund. If repair work is needed, J. Hershey Architecture will even provide the design and bid document services. That kind of attention to detail and dedication to customer service is what makes J. Hershey Architecture the premier choice in Northern Illinois.
Your condominium reserve studies can give you valuable budgeting insight. Let J. Hershey Architecture guide you through the effective management of your condo association reserve fund.