How Often Does Our Board Need To Do A Reserve Study For Our Building?
Is having a reserve study really necessary? The answer is yes, if not more so. Since a reserve study provides critical information about the needed repairs and upgrades for HOAs, it should be important to conduct them every three to five years in order to stay up to date with the latest regulations. These studies are costly, not only because the work is thorough and gives an accurate reflection of the state of the building at that time, but also because they will require involving a mechanical engineer and other consultants or experts. In addition, tackling emergency repair jobs are always more costly than planned ones, so it makes sense for Fannie Mae, one of the government-backed loan buying organizations, to put buildings on its 'do not lend list' if they are not putting 10 percent of their operating budget toward a reserve fund each year as part of future planning efforts that can help prevent special assessments. Does your community have a reserve study? Let us know by leaving a comment at HOACommunityLeaders.com.