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Ronvoeltz, Home Buyer in Mesa, AZ

What percent of monies collected should an hoa leagally put aside?

Asked by Ronvoeltz, Mesa, AZ Sat Jan 12, 2013

We have 154 owners and beside our budget every year we have $70,000 that is put away, been sitting there fo years not collecting any interest to speak of.

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Answers

2
I am the treasurer of an HOA with 900 members. The amount of money you currently collect is not the measure of what you should collect. Therefore, the current fees can not be used to estimate what you need to have in reserves. Your HOA should commission a Reserve Study to determine the correct amount you need to set aside for your reserves. Then you add that to the money needed for day to day operations to arrive at the amount you need to collect from your members in fees.

The quotes for a reserve study can run as much as $5,000 and should be done a minimum of once every 5 years. We recently use, a very good small firm for under $1000, Marcus Castle, Castle Reserve Studies, 480-250-9339, http://www.castlereservestudies.com.

Good luck. Call with any questions.

Loren Hoboy-Realtor
Your Local Expert
Central AZ Real Estate
LHoboy@centralAZhomes.com
623-688-0004
0 votes Thank Flag Link Sun Jan 13, 2013
You would have to study the books of any HOA to be able to know the answer. A Townhome developement that replaces all the roofs, paints the outside of the buildings when needed etc will need more reserves that an HOA that only take care of single family homes with common grounds to take care of. The HOA needs reserves or it does not have a healthy budget.
0 votes Thank Flag Link Sat Jan 12, 2013
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