PRA Blog/Articles

Management: Are Spreadsheets Still A Positive In Your Operations

Thursday May 14, 2015 | by Bill Chaffee

In the early 1980’s most budgeting and analysis was being done on 16 column accounting pads with a pencil and eraser. As we moved through the 80’s the first spreadsheets appeared. Slowly but surely a transformation took place that changed the way budgeting and statistical analysis was being done forever. Making a change in a physical 16 column accounting pad and then chasing that change all the way through could take hours. Making the same change or running “what ifs” takes only seconds in a spreadsheet. (Continued…)

Reserve Management: Not the Nightmare Everyone Thinks It Is

Friday October 10, 2014 | by Bill Chaffee

While the Vacation Ownership industry has changed and matured over the past generation, a majority of the industry is unaware that the task of reserve management is no longer the expensive or tedious task that it once was. (Continued…)

Reserves: No Standards for Calculations or Reporting

Tuesday May 14, 2013 | by Bill Chaffee

After more than two decades of review and re-calculating numbers in reserve studies, it is conclusive that there is a range of different financial results being produced by reserve study companies. (Continued…)

Reserves: A History of An Un-Unified Understanding?

Tuesday January 15, 2013 | by Bill Chaffee

With the introduction of common-interest-developments some 50 plus years ago, came the requirement of Reserves: the long-term maintenance and replacement contribution plan for the common areas. (Continued…)

RMP: Annual Update Only Takes 10 Minutes?

Tuesday February 28, 2012 | by Bill Chaffee

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...

Friday January 13, 2012 | by Bill Chaffee

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...

Thursday December 15, 2011 | by Bill Chaffee

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

Thursday August 4, 2011 | by Bill Chaffee

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

Thursday May 5, 2011 | by PRA Administrator

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?

Thursday May 5, 2011 | by PRA Administrator

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…)

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