Proposal Quick Tips

Tips on getting the reserve process started early in the year
  • If you need help in speaking to your board for approvals, we’ve provided some quick tips to help:
  • 1 – If your association completed their last onsite inspection prior t

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Identifying Dry Rot

As spring fast approaches, managers and HOA’s are thinking about the painting and repair projects they will undertake this year. Prior to painting any wood areas, it’s important to thoroughly inspect all wood trim, siding, decking, and appurtenant wood structures (i.e. trellises) for

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Why 3% Inflation?

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 historical

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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 professional and/or b

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Should You Do Your Reserve Study Early In The Year?

Keeping with our theme from last month’s article on proactive goal setting and planning for the New Year (Jump Start the New Year), we would like to discuss the benefits of re-thinking the entire Reserve Study process and its associated time cycle over the course of an HOA fiscal year. Gett

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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

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Superstorm HOA: Tight Budgets, Fiscal Cliffs, and Foreclosures

By Erik Sundquist, R.S.

The devastation caused by Super Storm Sandy will be felt for years to come and our hearts go out to the tens of millions of people affected by this powerful act of nature. While discussions of HOA’s and their specific challenges pale in comparison to the aforementioned devastation, it is

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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 develo

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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 busines

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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 F

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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 component

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How to Present a Reserve Study

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 conf

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Annual Accrual and the Fully Funded Balance

We have to set aside how much??

A Reserve Study is only an effective budget and planning tool if the board members and property manager are able to fully understand the information provided in it. Many people quickly look at the charts of numbers and ask, “We have to set aside h

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