DavidW5 (North Carolina)
Posts: 565
Posts: 565
Posted:
Our association board changed the threshold for items to be paid for out of the replacement reserves account from $1000 to $5000. The most recent reserve study no longer includes items under $5K. I am curious to know what threshold other HOA's use. Our HOA covers 800 single family homes in a 55 and over gated community with a clubhouse, pools, walking trails, etc. Because we are gated, the roads are private and the reserves have to cover road repair and repaving.
Questions have arisen about the source of funding for specific repairs. For example, the reserve study done last year lists the indoor pool pumps and filters as a single item, whose replacement cost is over $5K. One component had to be replaced this year at a cost of $4700, which was paid for from the operating account due to it being less than $5000. What level of detail does your reserve study cover? How do you determine from which account a specific repair should be paid? Suppose there are multiple related items, each less than $5K that need to be replaced at the same time - should these be paid from the operating account or the replacement reserve account?
Questions have arisen about the source of funding for specific repairs. For example, the reserve study done last year lists the indoor pool pumps and filters as a single item, whose replacement cost is over $5K. One component had to be replaced this year at a cost of $4700, which was paid for from the operating account due to it being less than $5000. What level of detail does your reserve study cover? How do you determine from which account a specific repair should be paid? Suppose there are multiple related items, each less than $5K that need to be replaced at the same time - should these be paid from the operating account or the replacement reserve account?