CAI-NJ May 2018 (w)

changing. There are not only changes to the supply and demand for the number of homes but the type of home and the geographical area also drive that demand. Right now the demand is high for units in urban areas like Hoboken and Jersey City. We have also seen the number of age restricted homes being built rise dramatically over the past ten years. So far much of the reaction to the supply and demand has come from the developers. But what happens when the baby boomers are no longer driving the demand for age restricted communities? Or what if Millenials no longer have a demand for city living? What can an asso- ciation do when the supply in their association rises and the demand for those units fall? The key is to be prepared to make decisions to stay competitive. Associations not only have to be willing to make changes to keep their units in high demand, they also have to have the ability to enact those changes. But staying competitive in the condo market doesn’t always mean having the latest and greatest. It also means being able to maintain the level of service desired by its current unit owners as well as potential buyers. The board and management play an essential role in finding what is right

for their community to make sure they stay competitive, in every way. No matter what is driving the supply and demand for your association’s units, the board and management have to be prepared to make the decisions necessary to keep the demand high. The ability to make those decisions starts with the association’s finances. Is the reserve study up to date? - Having a current study is important due to the fact that estimated useful lives and costs fluctuate. An updated study should take those fluc- tuations into account when making annual funding recom- mendations. A study that is always up to date, will give the board the information they need to plan for the future. Does the board understand the study and its recom- mendations? – It is important for the board to understand which components are included in the study and the study’s recommendations. Communication with the engineer is important. The engineer should have a clear understand- ing of the association’s needs and the board should work with their hired professionals to determine the best way to meet its short and long term goals. This may include select- ing a funding method or prioritizing certain projects. Once CONT I NU E S ON PAGE 26

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