Month: September 2015

Why 3% Inflation?

Why 3% Inflation? By David Hodges One of the most frequently asked questions about an association’s Reserve Study is why 3% is used as the inflation rate as opposed to the currently published 12 month inflation rate of 1.5%.  The answer has more to do with time than it does with current numbers.  Specifically, the Read More …

SMA Reserve Study Methodology

SMA Reserve Study Methodology By Erik Sundquist, R.S. Lead Inspector and Managing Partner My approach to every Reserve Study is the same, regardless of size and scope; to maximize the utility of the study as a working tool for the community manager and board. To this end I often find the approach of the management Read More …

Jump Start the New Year

Jump Start the New Year! Planning for the New Year is both invigorating and daunting at the same time.  It seems like every year we get to December and ask ourselves the same question: “where did the year go”?  While we’re still pondering that question, there’s a vague recollection about some stuff we decided…nay, resolved Read More …

The Dangers of Under Funded Reserves

The Dangers of Under Funded Reserves By Joseph Aiu (Statewide Subdivisions Compliance) California Department of Real Estate   The California Department of Real Estate (DRE) has issued this warning as a result of the growing number of homeowners associations (HOAs) that do not have sufficient funds or reserves to adequately maintain the common areas in the housing Read More …

Conflict

Conflict You’ve been there before – after a long week of trying to re-negotiate the landscape contract, a homeowner calls to complain about the hideous condition of the pool. It’s turning green from algae and the pool service company never bothered to call and let you know  they went out of business two weeks ago.  Read More …

What is a Reserve Study?

What is a Reserve Study? A Reserve Study is a budget planning tool which identifies the current status of the Reserve fund and a stable and equitable Funding Plan to offset the anticipated future major common area expenditures. The Reserve Study consists of two parts: the Physical Analysis and the Financial Analysis. This document is Read More …

National Reserve Study Standards

National Reserve Study Standards  Published by the Community Associations Institute January, 2011   General Information Reserve Study A Reserve Study is made up of two parts, 1) the information about the physical status and repair/ replacement cost of the major common area components the association is obligated to maintain (Physical Analysis), and 2) the evaluation Read More …

How to Present a Reserve Study

How to Present a Reserve Study By David Hodges NOTE: This article explains how to present the SMA Reserves’ Reserve Study Report to board members or owners. For a full sample of our Reserve Study Report please Click Here. Reserve study reports can often be confusing for homeowners, boards, and even professional managers. Even the Read More …