Reserve Planning for Homeowners Associations
All community and homeowners associations need to plan in the long-term. Cedar Management Group helps our communities plan for the future by training board members and implementing reserve studies.
The Reserve Planning Process
HOA Reserve Planning
Reserve planning is an important part of your HOA’s overall financial health. A reserve study identifies association maintained components, their useful lives, the cost of repair or replacement and a 30-year funding plan. This ensures that money is available when needed. The reserve study also ensures that all owners pay their fair share for major projects and that special assessments are only used for capital improvements.
Cedar works closely with the board of directors throughout the reserve planning process. First, all major association maintained components are identified. Next, the cost to renovate each item is then determined by contractor bid or construction cost estimate. Finally, the remaining useful life of each item is noted
Importance of HOA Reserve Planning
Buyers and lenders look closely at how reserve funds are handled by the association. Lack of reserves is a red flag for an inevitable special assessment. If given the choice between an association with healthy reserves or one with little or none, which would be the wiser investment? It’s our goal to make sure your community is always a good investment for your residents.
You need to work with an experienced management company and Cedar is up to the task. Let us help you through your reserve planning process and contact our office at (877)-252-3327 or request a proposal online.
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