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Well than what is it (fully funded reserves) and state your back up. I constantly get people telling me that
(1) I need a reserve study because they know no one will get that and or (2) just suggesting that whatever figure I have researched is somehow.. wrong.
So state how much it should be with your authority.
Not going to bother because I’d say “Only a comprehensive reserve study can tell you if your reserves are adequate or not”. Then you’ll say “Pft. My guesses are better than any old reserve study”. Just no point in arguing with someone who knows it all. I’m glad our Board recognizes that we don’t know it all and shelled out a whopping $2,500 to ensure we’ll have enough money to replace infrastructure when needed.
It depends. If someone looks at several condos, does their homework and actually looks at the budget and reserve amounts, they may go with the one with the higher fee and/or higher reserve amounts because they know it is well managed and the fee won't be going up anytime soon. A very low condo fee would be suspicious, especially if the development is 20+ years old. When things start needing to be replaced, you want that reserve fund to be high enough for repairs and you want the fee to be high enough to keep the reserve fund high enough, especially after a major project like roofs or roads or sewer system.
Yep. I’d never buy in a community that doesn’t have a formal reserve study and reserves at an adequate level. Not having those is far more worrisome than higher than the condos next door HOA fees. Sadly, most people are not aware of the ramifications of buying in a poorly funded community before they’re asked the bail it out.
Just no point in arguing with someone who knows it all. I’m glad our Board recognizes that we don’t know it all and shelled out a whopping $2,500 to ensure we’ll have enough money to replace infrastructure when needed.
So for the record you don't know that 1 years operating expenses is not sufficient and are suggesting that we spend money for what may turn out to be no reason? Who is the know it all here?
Yep. I’d never buy in a community that doesn’t have a formal reserve study and reserves at an adequate level. Not having those is far more worrisome than higher than the condos next door HOA fees. Sadly, most people are not aware of the ramifications of buying in a poorly funded community before they’re asked the bail it out.
Yes. Although some people freak out over relatively small things. One neighbor told me when he moved I better get out while I can. He said I'd pay $10,000 in special assessments due to crumbling foundation. Well, I've paid $900. Not bad as a total for special assessments in 13 years. And we have low dues. We do reserve studies, keep enough on hand (though some could argue that dues should have been raised with foundations looming). (I thought they should have when I was hit with that SURPRISE!)
So for the record you don't know that 1 years operating expenses is not sufficient and are suggesting that we spend money for what may turn out to be no reason? Who is the know it all here?
I know that reserves shouldn’t be based on the operating budget given that the annual operating budget is determined by the cost for upkeep and repairs and the reserves are determined by infrastructure replacement cost. And I know that without a reserve study you have no clue what level of reserves you should have. So while I’d never claim to know it all, I can comfortably claim in this one instance, to know more than you do.
Yes. Although some people freak out over relatively small things. One neighbor told me when he moved I better get out while I can. He said I'd pay $10,000 in special assessments due to crumbling foundation. Well, I've paid $900. Not bad as a total for special assessments in 13 years. And we have low dues. We do reserve studies, keep enough on hand (though some could argue that dues should have been raised with foundations looming). (I thought they should have when I was hit with that SURPRISE!)
Many people are very short sighted. Our reserve study turned up an issue with our water main coming into the community and quoted an estimate for its eventual replacement. Eventually was in October, but despite a 85K bill for replacement we didn’t raise dues for 2018.
This is what can be scary about HOAs. People who have no idea how to run things.
OP if the members of your association also like paying higher dues to have things upgraded more often, you are the odd duck out here.
Where I live, there is a group of people that want to pay higher dues and have a 'First Class Community' and others who do NOT want to pay for that. We want a medium community to keep costs down.
If we could all agree either way, or at least the vast majority of us, that would be preferable. Seems like that's what you have.
There is nothing right or wrong about whether a roof should be replaced a few years before it has to be - that is a matter of opinion.
I know that reserves shouldn’t be based on the operating budget given that the annual operating budget is determined by the cost for upkeep and repairs and the reserves are determined by infrastructure replacement cost. And I know that without a reserve study you have no clue what level of reserves you should have. So while I’d never claim to know it all, I can comfortably claim in this one instance, to know more than you do.
You don't know a thing but how to add irrelevant bull so you can *look* smart.
Quote:
Where I live, there is a group of people that want to pay higher dues and have a 'First Class Community' and others who do NOT want to pay for that. We want a medium community to keep costs down.
We have several residents who want that and mostly they are retired and have gads of money to waste. If they want that I feel like they should have gone to a 55+ community. But a 55+ community likely would have cost more and had higher fees so they come here and ruin it for the rest of us. They want to do assessments every 10 seconds to have have stuff and they don't care because they will be living here for the rest of their days. But for us.. we would prefer not to pay for a condo community we won't be at.
Did I mention that in addition to the reserves they levy assessments as well? Even with a fat reserve fund? Yup.
I am on the board. As I mentioned, the budget is in good shape. Reserves are solid. But they always want more reserves... no matter how stupid that is.
They have a sickness... ever year they want to repair something again that doesn't need repairing. Again and again and again... and, every time it is repaired they see non-existent problems.
Been there done that. There is ALWAYS (not sometimes... ALWAYS) a nucleus of people who have pet ideas (that's usually why one runs for board of directors) and you see money doled out for stuff that makes no sense. In addition, management companies have become very adept at concealing their practice of channeling maintenance services (brother in laws lawn service, etc). And yes, one complex raises its HOA fee, the others follow.
The whole HOA idea has run its route. It is now so abused that not only HOA dues keep going up, but the services (like landscape, snow removal, pool maintenance, etc) go up too. Partly because it is way easier to bargain with an HOA than it is with an individual. Those service companies have increased their charges almost coincident with the sheer number of HOAs there are. They elbow each other for an HOA contract because they get paid better and it's guaranteed money for a year.
I avoid living in an HOA if I can anymore. It's a real corrupted idea. I just hire my maintenance out. Not 100% successful, but definitely cheaper and I make the decisions.
You don't know a thing but how to add irrelevant bull so you can *look* smart.
We have several residents who want that and mostly they are retired and have gads of money to waste. If they want that I feel like they should have gone to a 55+ community. But a 55+ community likely would have cost more and had higher fees so they come here and ruin it for the rest of us. They want to do assessments every 10 seconds to have have stuff and they don't care because they will be living here for the rest of their days. But for us.. we would prefer not to pay for a condo community we won't be at.
Did I mention that in addition to the reserves they levy assessments as well? Even with a fat reserve fund? Yup.
That “irrelevant” bull is the advice and expertise offered by HOA management companies. If you doubt that, Google can help.
As I said earlier, I’d also be concerned if as you claim money is being spent foolishly. Money spent on repairs and maintenance is one thing and money spent on unnecessary upgrades is another. Perhaps you can recruit some like minded folks to serve on the Board so the “spend it alls” don’t have a majority.
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