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Reserve funds are set aside to plan for the future. They are designated savings accounts that allow associations to prepare for major repairs and replacements of common-area assets as they age. Even components considered “long-lived,” such as underground utilities, will eventually require maintenance or replacement.
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This webinar covers essential strategies for financing association projects, especially when reserves are insufficient.
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Inflation. We’ve all heard the word, and frankly, we’re all probably sick of hearing it. The reality is that many associations may feel the impact of this current inflationary period, regardless of when it lets up, for years to come. Part of what makes this particular period of inflation so impactful is that prior to March 2020, we experienced a fairly unprecedented level of inflationary stability ranging from 3-5% each year.
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As we all know by now, inflation has moved into our lives and isn’t estimated to move out for about a year or more. While some industries are already seeing some relief, this is not and will not be the case for many other industries for the foreseeable future, including those that community associations rely on for capital projects.
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When it comes to financing capital replacement projects, there are several funding options available to associations. Ideally, an association will have enough in reserves to complete the project in a timely manner, but there are other options accessible if this is not the case.
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We are often asked, “how can my association account for supply chain issues and rising costs when addressing our capital planning needs?” Unfortunately, this question often times arises when a community is in the thick of addressing urgent capital projects.
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It is more important now than ever to not lose sight of maintaining your association’s physical and financial health.
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In a perfect world every Association would have an adequate level of reserves to cover the cost of future capital replacement projects.
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This webinar focuses on frequently asked questions and best practices relating to maintenance of ponds, stormwater systems, shoreline stabilization and shoreline restoration in community associations.
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