PRA Blog/Articles
RMP: Annual Update Only Takes 10 Minutes?
This is an “Annual 10 Minute Update Solution” for those avoiding the tedious task of initially producing and annually updating a Reserve Management Plan. This solution/method will still produce the needed support for the annual reserve budget and cash flow projections which validate that reserve funds will be available when needed. This method can be applied to wholly-owned as well as vacation ownership/timeshare properties. (Continued…)
Beyond the Reserve Study...
Reserve Studies of some shape or form have been done for over half a century now for many common-interest-developments, timeshare and other types of properties. Prior to that, we surmise in some scenarios, like Mayan culture, Mesopotamia or even Machu Picchu, maybe an abacus, charcoal and papyrus process was attempted. The Reserve Study became simpler to do and more efficient to produce when spreadsheets came to life in the 80’s. Interestingly, the first version of professional cash management of reserve funds for associations and resorts was actually introduced in 1983. And surprisingly, the first cash flow projections weren’t presented until 1989. (Continued…)
Reserve Funds: Found Money...
After 33 years of being involved with asset management, investments and reserve management plans/reserves studies for common-interest-developments, we didn’t expect to find anything new in the analysis after all this time. Not only new, but potentially substantial in regard to the impact it may have on the entire industry by changing the way people look to utilize the reserve management plans/reserve studies with accompanying cash flows and investment analyses. (Continued…)
Reserve Management Plan - Unit Interiors
Producing a Reserve Management Plan for Vacation Ownership unit interiors is usually a long and tedious exercise that potentially has no end in sight. Usually the easiest way to tackle any exercise is to do the hardest part first. When it comes to producing a Reserve Management Plan in regards to unit interiors, the first task at hand just happens to be the hardest part – “accumulating all the necessary information and data”. So what information and data needs to be accumulated to produce a useful Reserve Management Plan? (Continued…)
The Responsibility of HOA Reserve Reporting: Deciphering California Civil Code Article 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. (Continued…)
HOA/POA Reserve Studies: Why all 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). (Continued…)
HOA/POA Reserve 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. (Continued…)
Veteran Timeshare Professional Creates Premier Internet Based Reserves Management Software
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. (Continued…)
HOA/POA Reserve Management: Simplify the Plan
Marketing and Sales are paramount to success in the Vacation Ownership Industry. Without them there are no revenues, let alone a business. But for them to be prosperous there has to be a product of value and a Dream. Buyers need to be enticed from the beginning and to be assured that their Dream will always be fulfilled. (Continued…)
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in Beyond the Reserve Study...
"Well written article. I agree that a reserve financial plan should be elastic, incorporate multiple …"
in Reserve Funds: Found Money...
"The article stated that, "The maximization of return on investments is not seriously addressed in mo…"
Sharon Zornes, Associate Controller, Welk Resorts
Setting up reserve studies for our new projects looked like a monumental task. However, with the PRA System, it was achieved with relative ease. I now have a system that can be managed effectively without enormous amounts of input.
