Foam Walls

I am the president of our homeowners association and we are currently discussing the installation of approximately 200 feet of foam wall at the entrance to our community. Does anyone have any ideas on the amount of maintance we should include in the annual budget for repairs?

DavidL4,

Good topic, sorry I missed it earlier. Hope the concepts I'm recommending assist you. There are 2 aspects of the foam wall (or any future addition) that must be funded and part of your budget. The aspects are Replacement and Repair.

Replacement:
The funds for replacement are to be set aside on a monthly basis in a Reserve Account so that when the lifespan is up, the wall can be replaced entirely. The equation can be derived as follows: ICW (initial cost of wall) divided by L (lifespan of wall in years) divided by 12 months divided by U (number of units contributing monthly maintenance). The dollar total for ICW must include the PCC (projected increase in construction costs) over the lifespan. For example, if the wall costs $25,000 and has a lifespan of 10 years, the real cost of the wall at time of replacement is not $25,000. The appreciation of the wall is what you need to budget for now. So take $25,000 + 10 years * 3.4% (cost of living, construction, or other appreciation values).

ICW/L/12/U

How do you determine the lifespan of the wall? Get it in writing from the manufacturer, and have a warranty. Depending on the wall, you should also consider making sure your insurance covers the association in case the wall collapses, etc.

Repair:
The funds for repair are to be set aside in a maintenance account. The funds necessary can only be determined by getting a bid from a local contractor on the painting, patching, or general maintenance of the wall.

Best of success!!
GeraldT1
NNJ