Reserve Fun, Funds, Funding and

Funding in a Crisis

H. Alan Mooney, P.E., RS

Jack Carr, P.E.

Criterium Engineers

Reserve

funAn oxymoron?

Reserve

funds

Discretionary?

Mandatory?

Reserve

funding

Political?

Procedural?

Absolute?

Flexible?

Reserve funding in a crisis

Should there be special procedures?

Reserve

funding

involves people...

What are the challenges?

• How can you effectively educate owners about the importance of reserve funds?

• How can you effectively inform owners about the regulatory obligations related to reserve funds?

What are the challenges?

• How can you present reserve fund study results that are accepted by the owners?

• How can you determine what flexibility is possible in a reserve fund study?

What are the challenges?

• What do you do if an owner defaults on their payments?

• What impact do the new FannieMae/Freddie Mac requirements for reserve funds have on your association?

What are the challenges?

• What impact does a marginally funded reserve fund have on lenders (and, therefore, buyers)?

• If you can’t do everything recommended in your reserve fund study, what should get the highest priority?

What are the challenges?

• How can you diffuse the “everybody’s a construction expert” debates that seem to develop around reserve fund studies?

Reserve

funding

involves people...solving

problems

Resources

• Carol Vaszuez, Property ManagerSBB Management, Dallas, TX

• Meka Bowling, Association ManagerPremier Communities, Keller, TX

• Peggy Murillos, Property ManagerExcel Association Management, Dallas, TX

Resources

• Al Pellegrino, Property ManagerP & A Management, Hamilton, NJ

• David Hill, Property ManagerAccess Property Management Group, Atlanta, GA

• Susan Juliano, Property ManagerHeritage Property Management, Atlanta, GA

Resources

• Renee Hane, Association ManagerREM Commercial, Canton, OH

• Jim Chen, Property ManagerCondo Management of Columbus, Columbus, OH

• Gary Caruso, P.E., EngineerCriterium – Caruso Engineers, Atlanta, GA

Resources

• David Dotson, P.E., EngineerCriterium – Dotson Engineers, Dallas, TX

• Tom Armstrong, Association Community ManagerPrincipal Management Group, Ft. Worth, TX

• Jim Yost, OwnerElite Management Advisory Services, Wildwood, NJ

Resources

• Art Wickerham, P.E., EngineerCriterium – Liszkay Engineers, Columbus, OH

• Dave Pioli, P.E., EngineerCriterium – Pioli Engineers, Seattle, WA

• Peter Garrett, OwnerMaine Properties, Scarborough, ME

Resources

• Donald Day, Property ManagerThe Dartmouth Group, Bedford, MA

• Suzan Adelman, Property ManagerBarker Management Company, Boston, MA

• Yohanna LaRoche, Property ManagerDirigo Management Company, Portland, ME

Resources

• Timothy Paoli, AMS, Property ManagerGreater Boston Properties, Boston, MA

• John Turner, P.E., EngineerCriterium – Turner Engineers, Bedford, NH

• David Abel, Property ManagerFirst Realty Management Corp., Boston, MA

Resources

• Ryan Saucier, Property ManagerForeside Management, Falmouth, ME

• William Turner, P.E., EngineerCriterium – S.T.A. Engineers, Cincinnati, OH

• Phillip Renzi, Property ManagerThayer & Associates, Cambridge, MA

Resources

• John Ciolfi, Property ManagerMillennium Place Partners, New York, NY

• David Dotson, P.E., EngineerCriterium – Dotson Engineers, Dallas, TX

• Kate Moran Carter, Esq., LawyerRobinson & Cole, Boston, MA

Resources

• Jodi Bennivedse, Property ManagerDarnburgh Real Estate, Fall River, MA

• Barbara Tandler, Property ManagerSimon Group, Braintree, MA

• Mike McKinnon, OwnerMcKinnon Property Management, Kennebunk, ME

Reserve

funding

involves people...solving

problemsin real time

Bonfire of the Priorities

– Inadequate insulation– Poor deck construction– Siding installation problems– Pavement maintenance– Improper ventilation

Bonfire of the Priorities

– Water infiltration– Roof ice dams– Site drainage– Lack of flashing– Foundation problems

Bonfire of the Priorities

– Inadequate insulation– Poor deck construction– Siding installation problems– Pavement maintenance– Improper ventilation– Water infiltration– Roof ice dams– Site drainage– Lack of flashing– Foundation problems

Case Studies

• Case of the Ninja Plumber

Case Studies

• Eliminate your

Case Studies

• Yes, We Got No Green Bananas

Case Studies

• Don’t Hang Out Your Dirty Laundry

Reserve

funding

involves people...solving

problemsin real time

Lessons Learned

• Importance of communication and relationships• Need for a reserve fund study• Consistent reinforcement of regulations• Effective board meetings• Educating owners and board members• Establish priorities and plans

…And Challenges Met

• Additional material to be handed out at presentation

Questions?

Thank you!!