Capital Reserve Fund
- How much money is needed in the Capital Reserve Fund? National Reserve Standards require a minimum 30% to 70% fully funded reserve balance for an “adequate” level of funding.
- We just had a Reserve Study. What did that tell us? The Reserve Study completed in January 2020 determined the Capital Reserve Fund contributions are too low to maintain The Landings Association’s assets in the near-term future. The required scheduled replacement costs rapidly erode the fund balance as illustrated in the chart below.
- What does this mean for the upcoming Annual Dues vote? Given that the Reserve Study determined that the Capital Reserve Fund is too low to maintain the Association’s assets in the future, the Proposal increases the dues over a three-year period to meet the 30% minimum funding National Reserve Standards by the end of 2023.
- Why is an increase needed? An increase is needed to prevent a rapid and visible decline in the quality and character of the community, the accompanying decline in community property values, and to prevent increased costs associated with deferred maintenance.
- Will residents have a chance to ask questions and find out more information about the upcoming Annual Dues vote? Yes. The Association and the Board will be scheduling a mix of in-person and virtual sessions over the next several months to answer questions and provide information on the upcoming vote.
This article was originally published by The Landings Association on their website. Visit landings.org to read the original article. https://landings.org/news/2020/06/24/capital-reserve-fund