Becoming a homeowner means that in addition to your career and family you are essentially taking on another lifelong project: the upkeep of your property.
Whether you are adept at DIY projects or have a handyman on speed dial, the average wear and tear on any type of home is going to require the occasional repair and maintenance.
As a HOA board member that responsibility will now fall on your shoulders to develop a comprehensive plan for your entire complex compound. This maintenance plan covers issues like gardening, minor fixture replacements and general upkeep, and is executed based on a Reserve Study that allocates the proper funding for necessary projects both large and small.
What is a Reserve Project?
Among the many stacks of paperwork you'll receive as a new condominium owner will be the Covenants, Conditions and Restrictions otherwise known as the CC&Rs. Typically, most new owners will engage in a cursory review of the CC&Rs to find out about restrictions that would have an immediate impact on their lives such as pet ownership or whether a washer/dryer can be brought into or unit.
As a member of an HOA board you will have to become a lot more familiar with all aspects of the CC&Rs in order for you to facilitate what is required of the HOA, especially when it comes to handling HOA maintenance projects.
The community association fees that go into a reserve fund are used for regular maintenance issues, which can range from replacing light bulbs to re-paving the entire community. These items are expenditures that are budgeted for, and separate from a Capital Improvement Project (CIP), which requires additional funding and could be something such as installing a pool at a community that does not have one. CIP’s are usually to fulfill a want, not a need, and are not exeuted nearly as commonly as a maintenance project using a reserve fund budget.
One note of caution: If aboard is constantly asking for additional assessments for HOA maintenance projects, they're probably doing an inadequate job of fund management. While unforeseen circumstances are unavoidable, associations who’ve retained professional management services have significantly decreased the threat of a special assessment.
Community association management professionals understand the importance of being proactive, maintaining an effective Reserve Study, funding reserves properly and developing a Maintenance Plan.
Voting for HOA Maintenance Projects
Because most CIPs require an additional assessment and budget, there will be a need for the HOA board members to vote on that issue. But for maintenance requirements already covered in an existing maintenance plan, they are already budgeted for and a board does not have to administer a vote. In other cases, there might be the need for upgrades that are required by federal or state regulations. This could be items such as handicap access or new railing height requirements.
When the issue is one of compliance versus a fine then no vote is required; the project simply needs to move forward.
Courtesy HOA Managment
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