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Category: Reserve Funds

Helping you understand community association business with industry leading insight.

what are reserve funds

What is the Purpose of Reserve Funds?

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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homeowners association reserve fund

Capital Planning for HOAs: How to Build a Long-Term Funding Strategy

Capital planning is one of the most important, if not the most important, responsibilities of an HOA board. Going beyond the day-to-day routine operation of the community, capital planning focuses on the long-term physical and financial health of the community, as well as proactive planning for the replacement of major community assets.

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Long term asset management

Case Study: Building a Foundation for Long-Term Asset Management

Whether an association has 300 units or 30, managing and planning for the maintenance and reserve funding for community components is never an easy task. Even small associations will face large-scale projects, and without the foresight to prepare for them, boards may find themselves in a sticky situation.

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