JimA19 (Georgia)
Posts: 54
Posts: 54
Posted:
Florida HOA- we have established a reserve account in our CCRs , are we required to develop a reserve study to support payment to the reserve?
jim A
jim A
A service of:
Community123.com
Professional websites for HOAs & condos, since 2004
Professional websites for HOAs & condos, since 2004
🎁 1st year FREE for HOATalk members! →
reserve study
Started by JimA19 • 2 replies • 105 views
💬 Join us to post & get advice from 50,000 HOA & Condo leaders.
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in
ElleN (Idaho)
Posts: 1,334
Posts: 1,334
Posted:
By my reading of FS 720, a reserve study means the following:
-- It designates the components to be funded by reserves.
-- It indicates the remaining useful life of each component.
-- It indicates either the replacement cost or deferred maintenance expense of each component.
By my reading of FS 720, if such a study is not done, then from FS 720.303 (6) (b):
"... funding of [your HOA's] reserves is limited to the extent that the governing documents limit increases in assessments, including reserves."
Conclusion:
If the HOA does not want its hands tied for funding reserves, then the statute requires a reserve study. If the HOA is fine with the limitation above, then no reserve study is required.
-- It designates the components to be funded by reserves.
-- It indicates the remaining useful life of each component.
-- It indicates either the replacement cost or deferred maintenance expense of each component.
By my reading of FS 720, if such a study is not done, then from FS 720.303 (6) (b):
"... funding of [your HOA's] reserves is limited to the extent that the governing documents limit increases in assessments, including reserves."
Conclusion:
If the HOA does not want its hands tied for funding reserves, then the statute requires a reserve study. If the HOA is fine with the limitation above, then no reserve study is required.
ElleN (Idaho)
Posts: 1,334
Posts: 1,334
Posted:
Why wouldn't you want a reserve study, even if it is a do-it-yourself one?
I think it is a violation of a board's fiduciary duty not to have one.
I think it is a violation of a board's fiduciary duty not to have one.
🎯 You've read this entire discussion
Join the conversation with 50,000 HOA & Condo Leaders:
- ✓ Ask follow-up questions
- ✓ Share your experience
- ✓ Get expert advice
- ✓ Access 350,000 discussions
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in here