14 Warning Signs that Signal Homeowners Association Reserve Problems

State laws and/or association governing documents typically mandate an HOA reserve study be prepared for funding the future replacement of major components such as roofs, streets, and exterior paint. The reserve study provides a current estimate of the costs of repairing and replacing the common area components over the long term. The preparation of a reserve study requires:

  • An examination of the association’s repair and replacement obligations;
  • A determination of costs and timing of replacement; and
  • A determination of the availability of necessary (reserve) cash resources.

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