>According to an article written using data from Association Reserves’ 30,000 reserve studies, 70 percent of associations in the United States are “underfunded.” This puts many organizations at an increased risk of special assessments, deferred maintenance, declining property values, and board member liability. According to the company, by accounting for the ongoing cost of common area deterioration and then properly funding reserves, boards are able to responsibly prepare for their associations’ future expenses.

“Our goal is to eliminate all excuses for board members not to be aware of the current strength of their Association’s reserve fund and the funding plan necessary to perform common area repairs & replacement in a timely manner,” says Robert Nordlund, PE, RS, the company’s founder. “The path from underfunded to appropriately-funded is a journey and a Reserve Study provides the necessary road map.”<