CAI-NJ May 2022 Community Trends

LOOKING AHEAD... from page 6.

CAPITAL RESERVES... from page 26.

Park, will be your opportunity to meet the members of the CAI-NJ Award-Winning, Legislative Action Committee (LAC), as well as network with the leading profes sionals in the common interest community industry while supporting the Political Action Committee (PAC). Join us as we support those who advocate for our communities as well as meet influential members of the organization. For further information and to register, visit, https://www.cai-nj.org/event-4715601. • The next Wednesday Webinar will be on Wednesday, May 18th. Please join us as FWH Associates, P.A discusses Flood Prevention/Stormwater Facility Management and GAF leads a discussion on Roofing Shingles. Managers receive one CEU credit for attending. For further information and to register, visit, https://www.cai-nj.org/event-4575027. • The Legislative Action Committee Virtual Roundtable will be hosted on Monday, May 23, moderated by the committee chair, Matthew Earle, Esq. Small group discussions will be led by Committee members on Building Safety, S2389 – Staffing Contracts, the Legislative Process, Accessory Dwelling Units, and Fannie/Freddie Underwriting. Managers receive two CEU credits for attending. For further information and to register, visit, https://www.cai-nj.org/event-4756569. I’m looking forward to seeing you at our upcoming events and hope you enjoy the Spring season with all the benefits the New Jersey chapter has to offer. n

the future residents will have to deal with this expense through special assessment or through financing. Any one of the above-discussed modifications in a Capital Reserve Funding plan can cause incorrect funding. A combination of these fund ing deferral methods can be disas trous for the future membership. As a simple math example, assume a 100-unit association currently funds $150,000 per year or $125/ unit per month toward the reserve account. The new reserve analysis shows the necessary projection for the association is $200,000 per year but it is not followed or reduced to the $150,000 original funding. In just 5 years of not following the original rec ommendation, the reserve fund would be $20,000 short or $250/unit. This calculation does not even take into account, inflation or an increase of work scope/cost due to the issues discussed above. This is a math prob lem that no one wants. Capital Reserve Analyses are typ ically performed by industry profes sionals with decades of experience in construction design, methods, materials and costing. Modifying the funding projections in major ways as discussed above is truly a disservice to the residents. This action will result in an increased need for funding or financing in the future and can also affect future property values and sales. It is critical that a building or community have an accurate analysis performed and follow the projections contain therein. n

Wilkin Management Group , Inc. 30 Years of History

For over 30 years, Wilkin Management Group has held to an unshakeable corporate philosophy of Creating Value for Our Clients. Our People , Process and Performance demonstrates an un-wavering commitment to do so. With locations in Northern and Central NJ Visit us on the web at www.WilkinGrp.com | 201.560.0900

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