HaroldB1 (California)
Posts: 1
Posts: 1
Posted:
When we reach the 20 year replacement reserves, can we lower our HOA dues?
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HOA dues
Started by HaroldB1 • 1 replies • 1290 views
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TimB4 (Tennessee)
Posts: 21,062
Posts: 21,062
Posted:
I would expect assessments would be set by the board and could go up or down.
Reserves typically don't reach a level and stop. They should have funds going into them to pay for future expected maintenance and replacements and funds going out of them to pay for current maintenance and repairs. It would be expected that at the time you reach enough funds to pay for replacements, the items would need replaces, creating the need to set aside funds for the next replacement.
A reserve study should be reviewed every year and adjusted for inflation. A study should be redone every 5 years to see if the Association is still on track or needs to adjust (higher or lower) the amount being set aside.
Reserves typically don't reach a level and stop. They should have funds going into them to pay for future expected maintenance and replacements and funds going out of them to pay for current maintenance and repairs. It would be expected that at the time you reach enough funds to pay for replacements, the items would need replaces, creating the need to set aside funds for the next replacement.
A reserve study should be reviewed every year and adjusted for inflation. A study should be redone every 5 years to see if the Association is still on track or needs to adjust (higher or lower) the amount being set aside.
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