CAI-NJ Dec.2017_1

WELL FUNDED... from page 17.

tion a board should provide is history of capital expenses. Keeping records of reserve fund expenditures, including project proposals, invoices, and maintenance records, is imperative. Documenting when projects are performed, the scope of work performed, and project costs will allow for a more accurate and complete reserve study. An Apple a Day Keeps the Doctor Away Or how about — “A reserve study every three to five years keeps away the tears?” It is recommended by the Community Associations Institute that updates to reserve studies are prepared every three to five years. Many changes can occur within a community during that time; roads can be resurfaced, sidewalks can be repaired, roofs can be replaced. Influences beyond the community’s con- trol can also significantly affect funding practices; Inflation, new construction technology, and new products are a few of these factors. An older association with a significant amount of repair and replacement activity may need to update its study annually. CONT I NU E S ON PAGE 20

owners of units in the years leading up to major projects. Establishing and following an adequate funding plan from the early stages of a community will prevent underfunding and ensure that all owners pay their “fair share.” Document, Document, Document There are several pieces of information a reserve spe- cialist requires to prepare a reserve analysis: the starting reserve fund balance, current funding levels, scheduled projects, etc. One of the more important pieces of informa-

"It is recommended

by the Community Associations Institute that updates to reserve studies are prepared every three to five years."

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