Upload
damian-j-esparza
View
113
Download
0
Embed Size (px)
Citation preview
Challenges of TodayChallenges of Today
• We are all required to do more We are all required to do more with lesswith less
• Community Managers have less Community Managers have less time to get more accomplishedtime to get more accomplished
• HOAs are facing more and more HOAs are facing more and more deferred maintenance issuesdeferred maintenance issues
How to succeed in todayHow to succeed in today’’s s worldworld
• A well designed your reserve A well designed your reserve plan will save you money and plan will save you money and make your life easiermake your life easier
• Collaboration is critical for Collaboration is critical for successsuccess
• Set up a checks and balances Set up a checks and balances system utilizing 3system utilizing 3rdrd party party professionalsprofessionals
Step 1: Assess completely Step 1: Assess completely Fact: Everything in your property is inter-related. Fact: Everything in your property is inter-related.
MaintenanceMaintenanceImprovementsImprovements
Water UseWater Use
Step 1: Assessing Cause and Step 1: Assessing Cause and EffectEffectFact: Water Intrusion can have damaging results Fact: Water Intrusion can have damaging results
IntrusionIntrusion
MoldMold
Step 1: Assessing Cause and Step 1: Assessing Cause and EffectEffectFact: Over watering can cause poor drainage and Fact: Over watering can cause poor drainage and dry rotdry rot
Poor Drainage and Dry RotPoor Drainage and Dry Rot
Over WateringOver Watering
Step 1: Assessing property in two Step 1: Assessing property in two sectionssections
Building EnvelopeBuilding Envelope
Site ImprovementsSite Improvements
Step 1: Assess Building Envelope Step 1: Assess Building Envelope SystemsSystems
Siding, Windows, Decks (Side)Siding, Windows, Decks (Side)
Roofing (Top)Roofing (Top)
Foundation (Bottom)Foundation (Bottom)
Step 1: Assess Site Improvement Step 1: Assess Site Improvement SystemsSystems
CurbsCurbs
Brow ditchesBrow ditches
StreetsStreetsStorm drainsStorm drains
SlopesSlopes
Step 1: Assessing Life of Project Step 1: Assessing Life of Project
ChangingChanging Proximity to CoastProximity to Coast
DynamicDynamicHillsidesHillsides
Soils Soils EnvironmentEnvironment
Step 1: Assess whatStep 1: Assess what’’s missing?s missing?Concrete RepairsConcrete RepairsDeck RepairsDeck Repairs
Replacing PipesReplacing Pipes Termite TreatmentTermite Treatment
Step 2: Design an Improvement Step 2: Design an Improvement Schedule based upon priorities rather Schedule based upon priorities rather than serviceability than serviceability
Failing BeamsFailing BeamsNew Tile RoofNew Tile Roof
Termite DamageTermite Damage
Dry RotDry Rot
New SidingNew Siding
Fact: Component Approach is a band-aid fix. The Fact: Component Approach is a band-aid fix. The systems approach addresses underling issues and systems approach addresses underling issues and will save you money. will save you money.
Re-paintRe-paint
Step 2: Design a systematic Step 2: Design a systematic approach to funding repairs vs. approach to funding repairs vs. component drivencomponent driven
Step 2: Adopt a Step 2: Adopt a ““decade designeddecade designed”” approachapproach
SidingSiding
RoofingRoofingPavingPaving
Step 2: New Design ConsiderationsStep 2: New Design ConsiderationsDoes your community have a conservation program Does your community have a conservation program integrated in its reserve funding plan?integrated in its reserve funding plan?
VBG Pool/Spa VBG Pool/Spa RequirementsRequirements
Water Efficient Water Efficient LandscapeLandscape
Termite Termite TreatmenTreatmentt
New Fire CodesNew Fire Codes
Step 2: Design a funding plan to Step 2: Design a funding plan to maximize serviceabilitymaximize serviceabilityFact: Annual Maintenance Programs can extend Fact: Annual Maintenance Programs can extend useful lives of components and save your HOAs useful lives of components and save your HOAs money. money. For Example, if a property reduces its depreciation For Example, if a property reduces its depreciation by 10%, it can utilize that money to extend by 10%, it can utilize that money to extend serviceability of components.serviceability of components.
Step 2: Design feed back loop – Step 2: Design feed back loop – measurability toolmeasurability tool
ComplaintsComplaints
InputInput
Feedback LoopFeedback Loop
TrendsTrends
Step 2: Design a Funding Plan: How Step 2: Design a Funding Plan: How much do we need?much do we need?
Step 2: Design a Funding Plan: Step 2: Design a Funding Plan: Percent Funded How much is Percent Funded How much is enough?enough?
Boca Del Vista Phase IV; 50 Boca Del Vista Phase IV; 50 Irrigation timersIrrigation timersSpecific Specific ReplacementReplacement
Step 2: Design a Funding Plan: Step 2: Design a Funding Plan: Percent Funded How much is Percent Funded How much is enough?enough?
Boca Del Vista Phase IV; 50 Boca Del Vista Phase IV; 50 Irrigation timersIrrigation timers
Annual AllowanceAnnual Allowance
Step 2: Design a Funding Plan: Step 2: Design a Funding Plan: Percent Funded How much is Percent Funded How much is enough?enough?
Boca Del Vista Phase IV; 50 Boca Del Vista Phase IV; 50 Irrigation timersIrrigation timers
Annual Expenditures Annual Expenditures Projection Projection
Step 2: Design a Funding Plan: Step 2: Design a Funding Plan: Percent Funded How much is Percent Funded How much is enough?enough?
Boca Del Vista Phase IV; 50 Boca Del Vista Phase IV; 50 Irrigation timersIrrigation timers
Annual Expenditures Projection Annual Expenditures Projection
Step 2: Design a Funding Plan: Step 2: Design a Funding Plan: Percent Funded How much is Percent Funded How much is enough?enough?
Boca Del Vista Phase IV; 50 Boca Del Vista Phase IV; 50 Irrigation timersIrrigation timers
WeWe’’re talk' in money here, pay re talk' in money here, pay attention! attention!
Contribution Impact Inconsequential Contribution Impact Inconsequential
Step 2: Design a Funding Plan: Step 2: Design a Funding Plan: Percent Funded How much is Percent Funded How much is enough?enough?
Boca Del Vista Phase IV; 50 Boca Del Vista Phase IV; 50 Irrigation timersIrrigation timers
Reduces Current Liability by $20,000…………Reduces Current Liability by $20,000…………and increases percent funded by .25 of a and increases percent funded by .25 of a percentage point! percentage point!
Step 2: Design a Funding Plan: Step 2: Design a Funding Plan: Percent Funded How much is Percent Funded How much is enough?enough?
Regular Regular AssessmentsAssessments
Special Special AssessmentsAssessments
75-100%75-100%
50-74%50-74%
25-25-49%49%
0-24%0-24%
Step 2: Design a Funding PlanStep 2: Design a Funding Plan
California Civil Code § 1365.5 (e) (5) A reserve funding plan that indicates how the association plans to fund the contribution identified in paragraph (4) to meet the association's obligation for the repair and replacement of all major components with an expected remaining life of 30 years or less, not including those components that the board has determined will not be replaced or repaired. The plan shall include a schedule of the date and amount of any change in regular or special assessments that would be needed to sufficiently fund the reserve funding plan. The plan shall be adopted by the board of directors at an open meeting before the membership of the association as described in Section 1363.05. If the board of directors determines that an assessment increase is necessary to fund the reserve funding plan, any increase shall be approved in a separate action of the board that is consistent with the procedure described in Section 1366.
Step 2: Design a Funding PlanStep 2: Design a Funding Plan
§1366. (a) Except as provided in this section, the association shall levy regular and special assessments sufficient to perform its obligations under the governing documents and this title. However, annual increases in regular assessments for any fiscal year, as authorized by subdivision (b), shall not be imposed unless the board has complied with subdivision (a) of Section 1365 with respect to that fiscal year, or has obtained the approval of owners…..
Step 2: Design a Funding PlanStep 2: Design a Funding Plan
FUNDING PLANSFUNDING PLANSWhen Do We Need it?When Do We Need it?
FUNDING PLAN - CONTRIBUTION FUNDING PLAN - CONTRIBUTION RATES RATES
Step 2: Design a Funding PlanStep 2: Design a Funding Plan
FUNDING PLANSFUNDING PLANS• Which To Which To Choose?Choose?
Current Current OwnersOwners
Future Future OwnersOwners
1.1.Stay the SameStay the Same2.2.Same, Adjust as Same, Adjust as
NeededNeeded3.3. Incremental IncreasesIncremental Increases4.4.100% Threshold100% Threshold
Step 2: Design a Funding PlanStep 2: Design a Funding Plan
Step 3: Implement Your Funding PlanStep 3: Implement Your Funding PlanFact: Your reserve plan Fact: Your reserve plan will make your life easierwill make your life easier and will save your HOA money if its properly and will save your HOA money if its properly designeddesigned
End Result: Greatest American HeroEnd Result: Greatest American Hero
Step 3: But Implementation is where Step 3: But Implementation is where most HOAs failmost HOAs fail
No SpecificationsNo SpecificationsNo DetailsNo Details
No AccountabilityNo Accountability
Step 3: Quality Control is critical to Step 3: Quality Control is critical to successful implementationsuccessful implementation
Fact: If you specifications and details are Fact: If you specifications and details are constructed per plan you increase your risk of constructed per plan you increase your risk of higher long term costs.higher long term costs.
Step 3: Collaboration is critical for Step 3: Collaboration is critical for successful implementationsuccessful implementation
Step 3: Implement checks and Step 3: Implement checks and balancesbalancesFact: Utilize 3Fact: Utilize 3rdrd party professionals to verify your party professionals to verify your funding plans are properly implemented funding plans are properly implemented
Step 3: Implement Annual Step 3: Implement Annual Maintenance ChecklistsMaintenance ChecklistsFact: Maintenance extends serviceabilityFact: Maintenance extends serviceability
If you cannot measure it, you can improve itIf you cannot measure it, you can improve it
1.1.Assessment and Reserve Funding Assessment and Reserve Funding Disclosure SummaryDisclosure Summary
2.2.Reserve Study Summary Reserve Study Summary 3.3.Funding Plan SummaryFunding Plan Summary
WhatWhat’’s Required By Laws Required By Law
• Current Market Value and Current Market Value and InflationInflation
Importance of Annual UpdatesImportance of Annual UpdatesWhatWhat’’s Required By Laws Required By Law
Fiscal Year
Date Prepared
Period Date Prepared
Period
2008 Prior to 12/1/2007
2008 Prior to 12/1/2007
2008-2038
2009 Prior to 12/1/2008
2009 Prior to 12/1/2007
2008-2038
2010 Prior to 12/1/2009
2010 Prior to 12/1/2007
2008-2038
2011 Prior to 12/1/2010
2011 Prior to 12/1/2010
2011-2041
2012 Prior to 12/1/2011
2012 Prior to 12/1/2010
2011-2041
2013 Prior to 12/1/2012
2013 Prior to 12/1/2010
2011-2041
Operating Budget Reserve Study
Importance of Annual UpdatesImportance of Annual Updates
Outdated Outdated InformationInformation
WhatWhat’’s Required By Laws Required By Law
• Reserve Study can make your life easier• Holistic Assessment• What’s missing?• Systems approach saves money • New design considerations• Collaboration is critical• Checks and balances and 3rd party
SummarySummary