It’s rare to find two condominium associations with identical footprints — let alone facing nearly identical capital planning challenges. Yet that was precisely the case for two long-standing Reserve Advisors clients who began their capital planning journey in 2012.
Condo East Association and Condo West Association, both built in 1980, consist of 58 residential units housed in identical three-story buildings of identical design. They not only shared the same footprint but also the same reserve components, aging infrastructure, and urgent funding needs.
When Reserve Advisors conducted initial reserve studies for both communities, it became clear that both were significantly underfunded. With aging buildings and systems, pressing capital projects, and limited reserves, the choice was stark – act now or risk compounded problems down the road.
Initial Decisions, Diverging Paths
Despite facing the same starting point, the two associations made very different decisions.
Condo East, while widely unpopular at the time but necessary to stabilize future funding, raised annual reserve dues by 60%. Furthermore, the board made the difficult decision to reclassify ownership of windows, doors, and balconies, shifting responsibility to individual owners to reduce the association’s long-term common area obligations.
By contrast, Condo West was able to implement a modest dues increase of less than 5%. The association retained ownership of windows, doors, and balconies, keeping these high-cost components within its future financial responsibilities.
The Long-Term Results
Reserve Advisors continued to work with both communities in the years that followed, and their paths steadily diverged as a result of the decisions made immediately following their 2012 studies.
Condo East, as of its most recent reserve study, has proactively tackled major capital projects without special assessments or delays. Roofs, boilers, and common area interiors have all been addressed on schedule – thanks to a well-funded reserve account and diligent planning for the community’s long-term needs. Current reserve contributions are recommended at $380 per unit per month, reflecting the healthy financial alignment with projected needs.
Condo West, last consulted with in 2022, continues to face significant challenges. Underfunded reserves and limited ability to increase dues have led to deferred maintenance and a reliance on special assessments. At the time of our last study, common area interior finishes were 18 years old, boilers were being replaced using special assessments, and roof replacements – delayed due to financial constraints – were projected to cost over 40% more than what Condo East paid. The latest recommended reserve contributions have grown to $920 per unit per month.
Conclusion
Condo East and Condo West began with identical conditions — but their long-term outcomes reveal the compounding effect of early decisions. More importantly, their story is a reminder that proactive planning is always possible. Every board faces difficult choices. The difference lies in having the right data, trusted guidance, and the resolve to act on a long-term plan.
Whether a community is laying the groundwork for future success or taking steps to get back on track, with the right plan, every association can take confident steps toward a resilient, well-maintained future.