Understanding Lakewood Reserves
For many of the first 30-40 years, there were insufficient Reserves being held back, which attributed to the low dues that residents enjoyed. (Similar to not saving for retirement).
After 43 years, the LPOA ordered it's first "Reserve Study" in 2015, to establish how much we SHOULD be reserving to prepare for maintenance of all our facilities. The Reserve Study was professionally done by an outside firm, Reserve Advisors.
It calculates the reserves needed through the year 2045.
Many of the recent plans have been done with future Reserves in mind. Here is sample from the first page of their report:
After 43 years, the LPOA ordered it's first "Reserve Study" in 2015, to establish how much we SHOULD be reserving to prepare for maintenance of all our facilities. The Reserve Study was professionally done by an outside firm, Reserve Advisors.
It calculates the reserves needed through the year 2045.
Many of the recent plans have been done with future Reserves in mind. Here is sample from the first page of their report:
Q&A | Understanding Lakewood Reserves
Q. Why do we need Reserves?
A. An HOA without an adequate reserve fund is asking for trouble. When an HOA without money in reserve is faced with expenses outside its general operations budget, the HOA will likely have two choices: Increase dues significantly right away, or levy special assessments. Neither of these will go well with the members of the Association. Owners will balk at, and might not be able to afford steeply increased dues or the demand for a large amount of money at one time. Special Assessments penalize the current owners for the HOA’s lack of planning. It’s much more fair and efficient to include repair and replacement costs automatically as a part of the periodic dues, as occurs when a reserve fund is properly maintained.
Q. What is the 2015 Reserve Study?
A. The year 2015 was the first time that Lakewood had conducted a Reserve Study. We hired outside consultants to perform the study. Please find it attached.
A. An HOA without an adequate reserve fund is asking for trouble. When an HOA without money in reserve is faced with expenses outside its general operations budget, the HOA will likely have two choices: Increase dues significantly right away, or levy special assessments. Neither of these will go well with the members of the Association. Owners will balk at, and might not be able to afford steeply increased dues or the demand for a large amount of money at one time. Special Assessments penalize the current owners for the HOA’s lack of planning. It’s much more fair and efficient to include repair and replacement costs automatically as a part of the periodic dues, as occurs when a reserve fund is properly maintained.
Q. What is the 2015 Reserve Study?
A. The year 2015 was the first time that Lakewood had conducted a Reserve Study. We hired outside consultants to perform the study. Please find it attached.