Aging Infrastructure Continued From Page 21
This prospect demands a dedicated manager and a commitment from the board. An additional investment of time and effort will be necessary to seek out the data from various sources, such as contractors, accounting staff, bankers, and project managers, in preparation for presentation and discussion with your board and committee members. Three areas to consider are: 1. Inventory Control Track common area elements in real-time, log updates from preventive maintenance actions and review assessment reports in order to adjust or extend the useful life of your reserve components where possible.
2. Capital Planning and Analytics Avoid using financial models based on outdated, static information, and instead, create multiple funding models to plan your budget and possibly ”buy more time” to build up reserves and prepare for your community’s future.
3. Project Tracking Tools When it’s time to replace outdated components and implement capital improvements in your community, you need project management tracking to map expenditures to your reserves, thereby lending insight into every phase of your project.
Extending the Remaining Useful Life
One of the most important aspects of reserve planning is knowing when a component will need to be repaired or replaced. The remaining useful life of many common area components, as reported in the reserve study, is the industry professional’s assessment of the exact condition of any given component. This indicator is intended to help guide the board of directors toward taking timely action. Being able to accurately predict when the association will incur an expense for major repair or replacement is essential.
When you begin tracking your community’s components in real-time, you will be able to calculate the impact of
Figure 1: Tracking Your Building’s Components in Real-Time — A living document allows your community to track and extend the remaining useful life of common area components in real time.
22 Community Associations Journal | November–December 2022
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