does anyone have reserve fund for landscaping (such as trees...)

Started by BonnieE • 11 replies • 2175 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

BonnieE (Illinois)
Posts: 338

Posted:

Hi everyone,

While I have read that a Reserve Study/Fund may include, or a separate fund specific to landscaping may be established for removal/disposal/replacement of long-lived plants (such as trees, shrubs), does anyone actually include trees, etc. in their Reserve fund (or have a separate fund) for landscaping?

I previously was asking these questions with regard to the emerald ash borer, but did not receive any replies (does this mean no one else has ash trees on their property in great enough numbers to be of concern?), so thought I would broaden my question.

Thank you!
Bonnie

MaryA1 (Arizona)
Posts: 7,043

Posted:

Bonnie,

Yes, our reserve fund includes replacement of trees.

MicheleD (Kentucky)
Posts: 4,491

Posted:

No, but we should.

By that I mean, we are not mandated to have any reserves, and I have been fighting to increase the dues in order to create a reserve account for that very purpose.

This year was the first year I have been able to do that (increase the dues), as I am only one board member and could not do that on my own.

However, since the board only voted to increase by the minimum amount allowed without a membership-wide vote, it will be nominal and basically only cover what some of our expenses have grown to be. ::sigh::

So, still the answer is "No."

RobertG12 (Arizona)
Posts: 160

Posted:

We just had a new reserve study done by a company that specializes in reserves. They list landscaping items but only include tree trimming in the reserve. The actual tree is not included.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Robert,

Ours was also done by an AZ company that specializes in reserve studies for community associations.

We have two landscaping items: granite replacement and tree replacement

RobertG12 (Arizona)
Posts: 160

Posted:

Quote:

Posted By MaryA1 on 06/16/2009 7:55 AM
Robert,

Ours was also done by an AZ company that specializes in reserve studies for community associations.

We have two landscaping items: granite replacement and tree replacement

Could be the same company. We also have the granite replacement, just not tree replacement. Our original study done in 2005 didn't include either.

JohnK3 (Pennsylvania)
Posts: 967

Posted:

Our BOD can use Reserves for just about anything it chooses, as long as the expenditure inures to the benefit of the HOA.

BonnieE (Illinois)
Posts: 338

Posted:

Thank you all!

Our original reserve report did not include any landscaping and the most recent update report since then (done by a different company) had fewer items included given a change in policy regarding exclusive use limited common elements (most were deleted from study/fund as Board decided most of these would be a HO responsibility).

With the emerald ash borer now here, I am considering either making a request that the next reserve study update include tree replacement, or a separate reserve fund for the ash trees be initiated with the next budget cycle. I’m not sure if reception will be positive as the Board has under-funded the reserve fund for several years and (with current outlook) will not have enough $$ for full funding of other capital replacements (siding, roofs, gutters) which may be needed within 3-5 years. Unfortunately, the “word” is that they think a special assessment is the route to go. (I know the downsides of this!)

Anyway, thanks for your input,
Bonnie

MaryA1 (Arizona)
Posts: 7,043

Posted:

Bonnie,

Let's just hope you and your one board member friend can convince them that a special assessment means poor planning on the part of the board -- a bad reflection they shouldn't want. If the reserve fund cannot handle the siding, roofs and gutters that will be needed w/i 3-5 years the board should be budgeting reserve funding big time. This might mean an increase in assessments, but that is far better than a special assessment!!

BonnieE (Illinois)
Posts: 338

Posted:

I agree!

But this is a "battle" I have been fighting for a few of years now (some of the Board members and I simply disagree on this). It's time for a new approach.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Bonnie,

Tenacity has a way of winning out, but it may take awhile. Just hang in there!

BonnieE (Illinois)
Posts: 338

Posted:

Mary,

I have been, and will continue to do so.

Thanks for the encouragement!
Bonnie

🎯 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