One of our clients, who had owned a “shelf” (rental) Condominium project for several years, decided to renew the existing Public Report and sell all of the units. Doing so involved having a new Reserve Study prepared, to create a start-up Budget for the HOA, and file the DRE applications and related documents.
When the Client contacted CBS, they had already engaged a Reserve Study company. CBS explained that we could not prepare the Budget until the Reserve Study was completed. Eight months later, the Client received their Reserve Study…. but it was prepared in a format that suggested the HOA was operational. It did not contemplate any of the renovation work being done. Unfortunately, the Reserve Study preparer was unwilling to revise the Reserve Study with a lower assessment amount, even after being given the renovation proposals and commitments, and another two months were lost trying to negotiate the revisions.
Ultimately, CBS was retained to prepare a new Reserve Study. The end result is that our Reserve Study was completed, the Budget was prepared, and the submittal to DRE was made within 30 days. The Budget was accepted by DRE within 60 days, and the Renewed Final Public Report was issued shortly thereafter.
At CBS, we are sensitive to the time a project is off-market. Timing is everything.
