Paying for sidewalks

If your sidewalks are common areas, how does your associations handle paying for repairs: reserves or operational budget? I've heard arguments on both sides and am wondering what most do.

Against reserves: obviously, sidewalks don't fail all at once and would never need to be replaced at once.
For reserves: it's a fairly large expense for some communities.

So far, our community has been budgeting $1000 operationally each year and making the most pressing repairs. However, it's more expensive to do smaller repairs and it is also hard to convince new board members to spend the $$ each year. I'm wondering if it makes sense to reserve for 5K in repairs every 5 years to get more for our money (volume discount) and still leave some $$ operationally to handle any obvious repairs that may be a liability.

Repairs come out of the operation budget for us but replacement comes out of reserves.

Our sidewalks are reserve components, too, but we don't handle them the same as Rob.

Our reserve study says whether the reserve amount is for repair or replacement but almost always for replacement. When the "date" arrives, the money is "freed" from the reserve account to do exactly what the reserve study says. If the Board votes not to use the reserve money for the reserve item, the reserve study is re-jiggered to take into account the delayed or cancelled reserve item.

Rob isn't wrong, though. To me, it is acceptable to use reserve money to extend the life of reserve components and essentially perform the reserve work piecemeal rather than all at once.

One remaining observation is that reserves are meant to pay for expensive and necessary projects that require funds that could not be reasonably raised in a year. Light bulbs are NOT usually listed as reserve components because, although they may last for many years but won't last forever, they are often affordable from the operational budget and don't require the long-term planning that are for reserves.

Admittedly, some HOAs use reserves as a sort of slush fund and raid it for small amounts to fund things that should be operational expenses. But we're not talking about that here: the repairs should extend the life of the reserve component, not just maintain it.

Dee,

We have it as part of our Reserves. We based the reserve amount on our Association historical expenses and it worked out that we incurred about $6,000 every 5 years for sidewalk repairs.

Tim

Elby,

It all depends on the legal boundary lines of the lots as described on the deeds.

For my association, the property line of the individual lot stops at the sidewalk edge closest to the property. This places the sidewalks, curbs, roads and traffic islands into the category of common area.

You should be able to go to your county land records office and get a copy of the plat for your development. This is the diagram your management company is looking for. The plat will show each individual lot that is within the property and the associated boundary lines.

Tim

Hi Elby:

Usually on driveways the straight line is for the sidewalk portion of the driveway. Even though there is a cut or slant in this area for pulling into the driveway, it is still considered sidewalk area.

We are a relatively new development in Louisiana. Our legal documents (restrictions, Bylaws and Articles) are silent as to who owns, maintains and repairs the sidewalks. Our streets are private and only some sections of the development has sidewalks. There is a grassy area between the sidewalk and the street in these residences which h
the homeowner has maintained (cut grass and stakes the tree0. The developer has conveyed some areas in the development to the HOA including streets and buildings but never the sidewalks. There are utility servitudes under the street which the developer still owns and has not been deeded over to the HOA. There are trees on the grassy area between the street and sidewalk which some homeowners maintain but others do not. What is the HOA's obligation regarding the sidewalks and grassy area with trees that abut the street? In the absence of any legal reference to these parcels who would be liable if an injury occurs on the sidewalk?

Hi Jean:

Like Rob I have to agree that it is difficult to answer without actually viewing your plats and documents.

I would imagine because you have private streets that pretty much everything will be HOA responsibility including the sidewalks, but that is just a guess from your statements. One idea is for you to possibly check with your local city planning and see what they have on record regarding your subdivision and what the HOA is responsible for maintaining.