Kuester Management Group Shares Insights on HOA Reserve Funding Goals
ncarol.com/10268370

CHARLOTTE, N.C. - ncarol.com -- There are a lot of expenses that come with running an HOA. Day-to-day expenses and basic maintenance costs are drawn from the association's operating fund. There is also a reserve fund that should be maintained to cover more expensive repairs, replacements, and projects. Kuester Management Group has released a statement to the press regarding considerations when it comes to how much money should be allocated to the reserve fund.

"Ideally, the HOA's reserve account should be 100 percent funded to ensure that it can cover anticipated costs," says Bryan Kuester, President of Kuester Management Group. "However, that is not always possible, so a reasonable goal should be to maintain at least 70 percent funded. This can minimize the amount of additional funds needed to pay for repairs or replacements."

More on ncarol.com

• Harvard Educated Board Certified Endodontist Joins Pearlfection Dentistry
• NYC Banners Delivers High-Stakes UN General Assembly Backdrop for the US Department of State Event
• OneVizion Appoints Energy Infrastructure Executive Walt Farrell to Board of Directors
• Tampa Bay Reporter Launches with a Mission to Deliver Local News with National Reach
• "JACKIE the STRIPPER," Starring Charlotte Kirk and The PUSSYCAT DOLLS' Kimberly Wyatt, Now Streaming on PRIME

The board should conduct a reserve study every three to five years to anticipate expenses and adjust savings as necessary, says Kuester. It is a good idea to hire a professional company to do this study, as they will conduct a detailed evaluation of the HOA's physical assets and financial health. This allows the board to have a better idea of upcoming projects, how much they will cost, and how much the association should be saving.

If the reserve fund falls below its target, it may not be able to fully cover the cost of repairs or replacements or may have to put off certain projects. The board may end up administering a special assessment where each homeowner must pay a certain amount to make up for shortfalls in the reserve fund. Or the association may have to take out a loan or seek other financial assistance.

"A comprehensive reserve study allows the board to see what major repairs or replacements are coming up and adjust the budget accordingly," says Kuester. "They may decide to increase annual dues or reallocate certain funds to put more money into the reserve account. Staying on top of preventive maintenance can also help prolong the life of community assets and minimize more costly repairs."

More on ncarol.com

• Migguel Anggelo Celebrates the Immigrant Experience, Latino Identity, and the Power of Iconic Latin Rhythms During Hispanic Heritage Month
• Indianapolis Criminal Defense Firm Rigney Law LLC Relaunches Criminal Law Podcast "Tales from the Brown Desk"
• 3ptechies Makes Its Articles Audio-Ready With Instaread Voice Technology
• Genuine Hospitality, LLC Selected to Operate Fairfield Inn & Suites Tampa Wesley Chapel
• Advantage Newspaper Consultants Celebrates 30 Years of Serving the Newspaper Industry

Kuester Management Group partners with HOAs across North and South Carolina to improve their financial health and optimize reserve funding, as well as enhance overall operations.

ABOUT:

Kuester Management Group, a division of Kuester Companies, works to protect property values and enhance the quality of life in each of its managed communities. Providing a full range of association management services, Kuester Management Group has worked to foster strong, resilient, and unified communities across North and South Carolina. More information is available at www.kuester.com or @KuesterCompany.