RESERVE FUNDING
KEY CONSIDERATIONS:
1. By improving communication, every homeowner understands how the reserve study benefits their community today and in the future. 2. Consider having the reserve specialist attend a board meeting to explain the findings. 3. Reserve specialists can potentially offer communication strategy templates and scripts. 4. Ensure homeowners have access to the reserve study findings through the association website or other portals. Utilizing Your Reserve Study The most successful associations utilize reserve studies as a starting point and continually assess chang- ing needs to attain long-term success by: 1. Reviewing it annually to determine if scheduled projects need to be completed. • If the project is structural in nature, seek a professional opinion before deferring. 2. Reach out for clarification as you embark on a reserve project. 3. Minor adjustments to the plan can be handled internally via the workable file provided by the reserve specialist. Complex changes might indicate the need for an updated reserve study. • Begin by updating the current year’s expenditures and reserve contributions. Next, review each deferred project and determine whether it needs to be completed in the upcom- ing year. Update the timing of any deferred expenditures. Once complete, the updated expenditure tables and funding plan can guide next year’s budget process. • Updated numbers enable associations to evaluate changing needs and address potential shortages in advance.
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