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HOA Reserve Reporting-California 1365

It is a little known fact that the preparation of a common-interest-development reserve study is not required to be done by a third party, section 1365.5 (e) - "At least once every three years, the board of directors shall cause to be conducted...a study of the reserve account requirements...". No reference to third parties, so a study can be prepared internally by an association. Also, California Civil Code Article 1365 (Article 1365) makes no reference to requirements of updating the study in the second or third years.

Reserve Studies: Why the Confusion?

When the common-interest-development (CID) industry was conceived it was probably impossible to foresee problems that might arise from the concept. It was a concept with a simple plan. Create affordable housing with shared common areas and amenities. Instead of paying $500,000 for a house and pay all related expenses (trash, water, gas, electric, landscaping, exterior maintenance and amenities), buy a condominium for $350,000 with tennis courts, pools, Jacuzzi, tot-lot, etc. and pay only your part of the common area ownership (one-hundred units, one-hundredth the cost).

Special Assessment

Association (HOAs/POAs) owners elect a board of directors to deal with the association's business. These elected board members have a fiduciary responsibility to perform due diligence in protecting the association's assets and in turn the market value of the owners' homes.

Veteran Timeshare Professional

One of the most important challenges of the timeshare product is being able to maintain a resort in its original condition, years and years after its initial development and repeated use by thousands of returning vacationers. Annual maintenance fees and the implementation of a carefully crafted reserve management plan have helped extend the lifetime of many properties.

Reserve Item List

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"I wolld like tothroughtnone additional consideration into the Calderon of thought....THE EXAMPLES above were made clear with the use of a single component…"
- Douglas Christison
"I have been creating reserve reports for 34 years and I am always asked by projects what is the ideal reserve fund. My formula is based on the individual…"
- William Grimes
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