2025 was the year that artificial intelligence (AI) really broke through to the public. Some board members may be wondering if they can outsource their reserve planning to AI and if it is a reasonable idea, so we are going to explore that idea in this topic. First, do AI models (Chatgpt, Perplexity, Copilot, Gemini) […]
Tips for Successful Reserve Planning
Reserve funding for associations can be a daunting task, but it does not have to be. Use the following tips to more successfully fund your reserves. Give Yourself Enough Time Other than funding reserves itself, this is probably the most important tip. It is so important to have a long enough of a runway to […]
2023 Florida Reserve Funding Updates
The 2023 Florida Legislative Session made some changes to Senate Bill 4D, which was passed in 2022. Senate Bill 4D brought sweeping changes to how condominiums and cooperatives that are 3 stories or taller must fund their reserves. The 2023 updated bill, Senate Bill 154, was essentially a glitch bill that ironed out some of […]
Sweeping Reserve Funding Changes for Condos and Co-ops
Governor DeSantis on May 26th, 2022 signed into law SB 4D – Building Safety Act for condominium and cooperative associations. This bill applies to all condominiums and cooperatives with buildings that are 3 stories or more in height and was a passed in a special legislative session. This comes only 2+ months after the previous […]
Reserve Funding Status Quo For 2022
**Update** On May 26th, 2022 broad changes were made to funding reserves and inspections. Click to read about the major changes to reserve funding in Florida. Florida Reserve funding laws for condominiums and coopeartives will stay the same for at least another year (no changes were proposed for home owner associations). This comes after several […]
Long Term Effects of Underfunding Reserves
The goal of any association budget is to properly identify their annual operating costs and their long-term capital reserve item portion contributions. Associations are pretty good at budgeting their annual operating costs, but sometimes not as good when it comes to budgeting the reserve portion. With reserves, not funding enough money will not have a […]
Reserve Funds: Expectations versus Reality
Most associations know that it is important to adequately fund their reserve items. However, the reality of actually doing it is a different matter. It takes time, effort, and political capital to properly fund reserves. Reserve schedules should be examined every year and not left on a shelf to collect dust. The political capital comes […]
5 Ways to Turn Around Your Reserve Fund Situation
It is common for associations to be a couple decades old and to never have had a reserve study performed. In fact, we hear that quite a bit. It is likely that if your association has never had a reserve study that they are not funding enough in reserves or are issuing special assessments to […]
How Does Our Reserve Fund Compare to Other Associations?
Reserve funding for associations varies widely based on the size of the association, number of reserve components, and cost of the reserve components. So comparing the annual funding amount of one association to another is an apples-to-oranges comparison. The best comparison, however, would be to compare the percent funded of associations. Percent funded essentially measures […]
Fannie Mae Reserve Funding Requirements
The Federal National Mortgage Association (“Fannie Mae” or “FNMA”) is a government-sponsored enterprise that along with Freddie Mac is the largest holder of residential mortgages in the United States. Increasingly, Fannie Mae is asking to see reserve studies for homeowner associations (HOA’s) and condominiums. Their reason for asking for this analysis of the community’s reserves […]
Understanding Percent Funded of Reserves
One key feature that a reserve study should indicate is how well funded an association is. The way that is measured is by a term called percent funded. In Layman’s terms, percent funded means how much money you have in reserves versus how much money you should have in reserves. The Community Associations Institute defines […]
Five Myths of Reserve Studies
Reserve studies are an essential part of property management, especially for larger community associations. Many communities get them performed and rely on them for the long-term planning part of their budget. Nevertheless, some communities are reluctant to have one done. The following are five myths regarding reserve studies. Myth 1: Reserve studies are too expensive […]