Corporate Headquarters
735 N. Water Street, Suite 175
Milwaukee, WI 53202
800-221-9882
Helping you understand community association business with industry leading insight.
Arbitrary percent funded values do not provide a complete measure of the health of your reserve funds. Threshold funding provides a clear understanding of financial health.
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Boards and owners alike must balance the need to keep adequate savings for future projects with the desire to keep monthly or quarterly fees at reasonable levels.
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Are your reserves fully funded? It’s a great question, but at the risk of making this sound like a legal blog, it depends. In order to answer the question accurately, we first have to define the term fully funded.
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Community leaders, as defined within the Community Associations Institute’s Rights and Responsibilities for Better Communities, “have a responsibility to fulfill their fiduciary duties to the community they serve and to exercise discretion in a manner they reasonably believe to be within the best interests of their community.”
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Common-interest developments or community associations are the fastest growing housing sector today. These types of associations exist as condominiums, cooperatives, vacation timeshares, planned unit developments and more. According to the Community Associates Institute, as of 2020, over 25% of the entire US population lived in a community association.
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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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Corporate Headquarters
735 N. Water Street, Suite 175
Milwaukee, WI 53202
800-221-9882
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