Advance HOA held another successful board transition meeting and managed to achieve well over the quorum requirement for a 1500 unit community. Congratulations to a participative and informed community for electing its first seven member board. We appreciate be a part of the community.
Thanks to Great Boards for conducting an informative Board presentation regarding Reserves and August 13th. Part of our continuing effort in Moving Communities Forward.
Thanks to Mark Payne of Winzenburg, Leff, Purvis and Payne for conducting an informative session on Fair Housing for our Board members and managers.
Advance HOA Management, Inc., is happy to announce the opening of our Northern operation, effective January 1, 2014. We look forward to enhancing service levels to our Northern communities as we continue to focus on our mission of Moving Communities Forward.
Contact us today to learn more about Advance HOA Management.
A board of directors meeting is a critical date for decision making and implementation and it is at this time that a Board, with the support of Advance HOA Management, should make an effort to review and take action on all matters that have arisen to that day. However, there are times when actions need to be taken between meetings and these actions should be properly approved and documented. Below are recommended steps for any actions taken by e-mail outside a regular board meeting. It is strongly encouraged that actions between meetings be kept to a minimum and be sure to double-check your Association bylaws for any action between meetings requirements. For example, the bylaws may requirement unanimous consent, in which case a simple majority approval by e-mail will not suffice.
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Another great night of education hosted by Advance HOA Management, as we continue to Move Communities Forward. Thanks to Land Care who provided a presentation on Emerald Ash Borer, a pest of historical significance that has killed approximately 100 million trees since 2002 and how our HOAs can take action.
Pat Wilderotter of Cherry Creek Insurance Group provided an excellent presentation on insurance for HOAs. Her many years of experience in HOA insurance and extensive knowledge made us all better at what we do as managers and board members.
Newbridge HOA Annual Cleanup Crew
It was beyond hot, but the neighborhood kids pulled through with picking up trash! They were rewarded with refreshing ice cream.
Please RSVP by September 27th to firstname.lastname@example.org
or by calling (303) 482-2213 x 507
Download the PDF below for more information
IMPORTANCE OF RESERVE STUDIES
Maintaining the association’s common property is among the manager and board member’s highest responsibilities, and it takes a long range plan to prepare successfully for repair or replacement of the association’s major common area assets. The reserve study is the plan by which the association expects to offset ongoing deterioration and prepare for inevitable future expenses. Reserve projects are typically the largest expenses that an association faces, and proper financial preparation takes many years.
A reserve study is a budget planning tool that considers the current status of the replacement fund and determines a stable and equitable funding plan to offset the anticipated future major common area expenditures. The reserve study can also be very useful for developing a fund budget.
Consequences of not having a reserve study:
Reserve study benefits are as follows:
It’s important to understand the various types of reserve fund methods. A summary is as follows: Fully Funded Balance: The amount of money you should have saved based on how much an item will cost you in the future divided by the amount of time you’ve had to save.
Cash Flow Method: The amount of money you need to offset the variable annual Reserve component expenditures.
Baseline Funding Method: The amount of money you need to keep your Reserve Fund cash balance above zero dollars.
Threshold Funding Method. The amount of money you need to save to keep a desired Reserve Fund balance – typically between 30-70%.
Most communities use the Threshold Funding Method to guide the funding requirements. 30% and below is considered Weak, 70% - 80% is considered Fair, over 80% is considered strong. Below is a chart that depicts the Percent funded and its relationship to the likelihood of needing Special funding.
41% - 70%
21% - 40%
Whenever possible, use an experienced, qualified person to prepare a reserve study because of the technical detail involved. State laws do not specify the type of professional who may prepare a reserve study. If an association cannot afford to use a specialist, some reserve companies offer a do-it-yourself kit. This kit provides the software programs and worksheets needed to complete a reserve study. However, the board will still be liable for the effect of incorrect data.
The value of having the reserve study conducted by Reserve Specialist is as follows:
The manager and the board should review the reserve study annually; particularly the funding plan because the association’s physical assets may deteriorate at different rates, interest and inflation rates change, and the association may change its reserve strategy from conservative to aggressive. Each replacement fund budget line item should be updated each year using current cost, estimated remaining life, and current funds on hand.
Claire gives a call into Jenny at Advanced HOA about an issue that was taken care of and wanted to share a thank you for the great work. Listen to the testimonial above.
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