Background
In every Homeowners Association board, there’s often one member who passionately opposes any increase to the budget. Regardless of justifications, this individual consistently votes against it.
We were contacted by a Condominium Association that had never conducted a reserve study in its 18-year history. The reserve contributions, approved by the Department of Real Estate, were dwindling away, with only a fraction of the required amount being collected alongside other monthly costs.
The Problem
During our site inspection, we noticed significant neglect in various aspects of the development, paint being the most obvious. There had been no interior or exterior paint touch-ups. Numerous deferred repairs and maintenance had progressively gotten worse over time.
After conducting a comprehensive inspection and study, we recommended regular increases in monthly reserve contributions or the option of a one-time special assessment to get back on track. While most board members supported these recommendations, one consistent “no-voter” remained skeptical and reluctant to embrace any changes.
How We Helped
To address the resistance, we offered to sit in one of their board meetings, going through the reserve study components one by one. During the meeting, we provided a detailed explanation of the rationale behind our recommendations and detailed how the costs would only get worse with time. This approach enabled us to reach a resolution with the reluctant board member. As a result, the board decided to make incremental increases in monthly reserve contributions.
Our involvement extended further as we collaborated with the HOA’s management company to guide the community back toward financial health. We assisted board members in understanding their fiduciary responsibilities and the overall financial well-being of their community. While the community wasn’t immediately restored to full health, our efforts set them on the right path toward achieving an optimal funding level.
At California Builder Services, we see ourselves as partners with our HOA Managers and Board members. When situations call for it, we are happy to collaborate with you to reach a desirable outcome.
