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Reserve percentage

Started by JanetB9 ā€¢ 10 replies ā€¢ 583 views

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JanetB9
Posts: 68
Posted:
Is sharing the reserve percentage of our HOA allowed? I shared it with another Board member from a different HOA recently during a Board member training on Reserve Studies and Financials and the PM said thatā€™s confidential information?? Canā€™t find anything online that states we canā€™t share the percentage of our Reserves.
JohnT38 (South Carolina)
Posts: 1,631
Posted:
Quote:
Posted By JanetB9 on 03/16/2021 1:44 PM
Is sharing the reserve percentage of our HOA allowed? I shared it with another Board member from a different HOA recently during a Board member training on Reserve Studies and Financials and the PM said thatā€™s confidential information?? Canā€™t find anything online that states we canā€™t share the percentage of our Reserves.

Personally, in a training environment I can see why you shared this. Is it technically allowed? I have no idea but I wouldn't lose any sleep over this.
CathyA3 (Ohio)
Posts: 6,299
Posted:
I probably wouldn't have shared it, but I've never heard that the number is particularly confidential in the way that details about ongoing litigation is confidential.

For what it's worth, the percentage may be a target, but it will change over time as contributions are made and money is spent. So whatever you quoted will become inaccurate eventually and shouldn't be relied on as gospel.

I also wouldn't worry too much about it.
KerryL1 (California)
Posts: 14,550
Posted:
You have many complaints about your PM, Janet. She says things and you have reason to doubt her (him?). Why not simply ask her to show you the policy, law, or rule to support her claims?

Do you have any support from other board members concerning your displeasure with the PM?

I've been in social or seminar settings, where board members from other HOAs have said their reserves' % funded. In at least two cases, the % was wrong and the directors didn't know what they were talking about.

We announce out % funded t open meetings every month and owners who attend can tell anyone they wish, right?
NpS (Pennsylvania)
Posts: 4,216
Posted:
A PM was once hell-bented
To say we weren't properly percented
She said we were wrong
We told her so long
Now we are better represented
Sikubali jukumu. Read all posts at your own risk.
MarkM19 (Texas)
Posts: 1,459
Posted:
Janet,
I think when you go to any HOA workshop you are trying to learn from others and also pass your knowledge and tips to others as well. Telling someone the % you believe you are at the moment is nothing more than small talk. It sharing any actual numbers or any real details.

I agree with Cathy and Kerry and seems like once again your PM is wrong as I have never heard or seen that in any of the CC&Rs or bylaws I have read.

This PM seems like a Bully and the best thing you could do is punch him/her in the mouth with facts.
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By JanetB9 on 03/16/2021 1:44 PM
Is sharing the reserve percentage of our HOA allowed? I shared it with another Board member from a different HOA recently during a Board member training on Reserve Studies and Financials and the PM said thatā€™s confidential information?? Canā€™t find anything online that states we canā€™t share the percentage of our Reserves.

Have the PM cite the rule or law, Put up or Shut up.
SueB9 (Alaska)
Posts: 22
Posted:
So what is the reserve percentage for your HOA? I have read many an article about the recommended percentage, anywhere from 75% to 100% funded for future high value building and roof replacement costs/projects.
MarkM19 (Texas)
Posts: 1,459
Posted:
Sue,
From reading the original post if we told you we would have to kill you. LOL we just did a new one after 3 years and are awaiting the final paperwork. In our case we are going to be way over 100% because our last PMC was deducting our Reserve allotment each quarter and then also taking the Fee that is documented in our CC&Rs as Working Capitol Fee of $300.00 and adding it to reserves. This meant that an additional 40 to 50k annually was going into reserves. This was double funding reserves.

We are going to have to make some decisions on future contributions and create a Working Capitol Fund to capture those funds so it can be used for future New projects. I think we will likely reduce our reserve contribution for a year and instead transfer that money into that account since we do not want to remove any funds from reserves which could cause a problem.
MarkM19 (Texas)
Posts: 1,459
Posted:

Janet,
I just got our Reserve Study back late last night. We are in the rare case of being over funded to the tune of 127%. This is not normal and as I mentioned earlier is because the reserves were funded by the budgeted number and then extra funds from a Fee the developer established for New Homes and Resale transfers of $300.00. It was called a Working Capitol Fee and should not have gone into Reserves. I have attached a very simple snipit that shows a meter that allows where HOAs are based on the percentage they have in Reserves.
MarkM19 (Texas)
Posts: 1,459
Posted:
Trying again
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