Reserve planning is something that every homeowner association, regardless of size, should do because the HOA is entrusted with very expensive assets that affect member home values. Failure to maintain them causes home values to fall. The "reserve study" breaks down common elements into components and analyzes their current cost of repair or replacement and predicts when that event should take place. Reserve components come in all shapes, sizes and values. They are not all created equal.
The 15-year FRM this week averaged 5.79 percent with an average 0.4 point, up from last week when it averaged 5.78 percent. A year ago at this time, the 15-year FRM averaged 5.89 percent.
One of the vexing issues a new Board has to contend with is lax enforcement of owner additions and modifications by former boards. Lack of enforcement often results in noncompliant decks, fences, sheds and other creature comforts. The violators often claim they got verbal approval for the installation from the developer or some board president that moved years ago. Others claim they didn"t know approval was necessary. But for whatever reason, there are now a boatload of violations that need to be reconciled. How should the current Board deal with them?