Components/punch list/contracts

General question.

Most board members are not experts on reserve study components and exactly what they should check when hiring contractors to perform the work, problems that could arise etc. It would appear that with the number of HOAs that there would be a written guide on every major component in any reserve study. i.e. if there is a need to replace a deck what specific questions need to be asked.

Outside of reserve study items if storm drains needed to be cleaned, what does the board need to know about cleaning storm drains?

Are there any written guides developed by any boards or management companies. Would seem this would be down to a science.

Thanks!

It is about the maintenance to be performed as opposed to the reserve study itself. What needs to be considered i.e. if the reserve study dates that decks need to be replaced in the next 1-2 years. Check list that apply to these and other maintenance needs. I can paint the entire interior of my house but I am not a paint expert. So if interiors of multi family condos needed to be painted what should be considered. If replacing carpet what needs to be considered? Would steps & sub-flooring be a concern and need to be inspected at the same time.

My objective is that all boards could use some standard guidelines. Amazed they do not exist.

The Community Association Institute (CAI) has several books and brochures on various issues - I don't know if they would have anything specific on HOA components since that varies by community, but getting information on what the reserve studies are, how they're prepared and how they influence the budget would be a start.

Beyond that, there's a bunch of information on home maintenance, such as how often to inspect a roof and what to look for. It's not about being an expert on everything (board members may not be roofers, plumbers or HVAC technicians), but you can start with the care and feeding of a single detached unit and extrapolate to the entire community.

For example, your reserve study might say storm drains may need to be replaced every 10 years, but during that time, you may need an annual inspection to check for problems. Or, you should apply rootkill to your sewer cleanout at least once a year. Those maintenance tasks could be put in a comprehensive schedule - every month, do this, every 3, 6, 12 months, do something else. Start with your property manager, if you have one and see what you come up with.

In the same vein, there's information on what to look for when hiring a contractor - you could check with your local consumer protection bureau to see what should be done, and if you have a property manager, he or she can do a lot of that legwork for the board and then they can review it to make a decision. Put those steps in a board resolution that will mandate what needs to be done (e.g. all contracts must be in writing, at least three bids must be obtained for work costing more than X amount, where appropriate, all contractors must have a current license and performance bond, etc.)

Virginia Statutes [emphasis added]

§ 55-514.1. Reserves for capital components.

A. Except to the extent otherwise provided in the declaration and unless the declaration imposes more stringent requirements, the board of directors shall:

1. Conduct at least once every five years a study to determine the necessity and amount of reserves required to repair, replace and restore the capital components;

2. Review the results of that study at least annually to determine if reserves are sufficient; and

3. Make any adjustments the board of directors deems necessary to maintain reserves, as appropriate.

Example: We own the roads. Hence we set aside funds for milling and paving. Yearly, I contact the contractor that performed the work last time and asked what was the current cost per square yard. This cost is then used to update our Reserve Study to ensure we set aside enough funds for the actual cost when the work is done (vs. what the cost would have been 5 years ago).

They do exist, but as you say, most people do not posess the necessary expertise and experience to evaluate all those considerations. Most places will hire a firm that specializes in reserve studies. Those firms have people working for them who know how to estimate replacement costs and everything that goes into them such as paint formulations, sub-floor requirements, wear & tear on the roads, roof replacement needs, etc.

You can do it yourself but if you're off significantly with your estimates of remaining life and/or cost estimates then you could run into problems. The heart of a reserve study is its estimates, to be sure, but reserve specialists are probably going to do a better job of estimating than you would be able to on your own precisely for the reasons you state.

Getting recommendations from your state contractors licensing board is another place to start.
This way you'll get a properly licensed contractor, and one that is specialized in the work you need done.

Thank you all for the responses. Your time is appreciated.