What is Percent Funded?

Percent funded is the ratio of what an association has set aside for reserves vs. the total depreciation of all their components (fully funded balance). Percent funded is one of the most important numbers to look at when reviewing an associations reserve study. The higher the percent funded the better off your association is. As […]

Where Do Replacement Costs Come From?

The most accurate cost source is actual bids from contractors or to look at contracts from the last time the repair/replacement was performed. In most cases bids or contracts are not available so unit costs for similar work done in the same local area are used. In addition, it is helpful to talk to local […]

What is a Special Assessment?

Special Assessment is a term used to describe a temporary, unplanned tax levied upon the members of an Association on the basis of a membership vote. A special assessment can be a single lump sum demand by the Association, or collected in multiple payments. Sometimes the need for a special assessment comes about due to […]