Reserve Fund Study

Started by RobertW35 • 2 replies • 220 views

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RobertW35 (Florida)
Posts: 48

Posted:

I live in Florida and we are 6 weeks from our Turnover. Is the Developer and current Board required to perform a reserve study at the Developers expense for the Turnover or shortly after that ??? What other studies are they required to perform at their expense. Thank you.

TimB4 (Tennessee)
Posts: 21,062

Posted:

My understanding is that this is all negotiated.
The Association should hire their own attorney (not associated with the developer).

If need be, the Association can see if the developer was required to put a bond up with the city and they can make a claim on the bond (if it hasn't been released) for some things. Prior to making a claim - check with a local attorney

Here is some info on transition (turnover):

Transition from the Community for Association Research

Developertransition.com This website is intended to specifically address the issues facing townhome, condominium, and homeowner associations in North Carolina. [still has good general information as well]

8 Steps to Transition your HOA or COA from Developer to Owner from an MC

KerryL1 (California)
Posts: 14,550

Posted:

Some FL poster might be able to tell you if FL requires a reserve study before they give their final approval of "the project." CA does. but even so, our developer overestimated the lifespan of many reserve items and underestimated their replacement cost.

They developer also neglected to place all common area components in the reserve study. These three factors led to an underestimation of what the annual dues needed ti be for new buyers thus rendering a more marketable product.

IMO, you owners should get together and hire someone to estimate these components' useful lives. A project Maintenace Manual will give an expert a good idea for many components. Other estimates depend on your weather, e.g., roofs. if you're a multi-story budiling, you may want an engineer to take inspect the relevant aspects of your project.

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