Aging Infrastructure  Continued From Page 23


boards are hesitant to make the big decisions. However, if such decisions can be supported by data that clearly shows why a decision must be made, and the consequences of not making it, boards become more confident.


Going the extra mile to share collected data builds trust with community members who are then better able to understand the association’s financial position and planning strategy. Increased transparency will take some of the mystery out of how the board arrived at the reserve contribution amount and the importance of sufficiently funding their community reserves. (See Figure 3)


Going the extra mile to share collected data builds trust with community members.


Getting the Most from your Reserve Study


While Surfside gave us all a wake-up call into the consequences of doing nothing, the consequences of aging infrastructure and a lack of proper planning are still being felt. Florida has already passed new laws requiring all condominium boards to better protect their association’s real property assets and safeguard their membership’s future. Similar laws are being considered in other states across the country. Insurance agencies are reconsidering policies, and federal agencies like Fannie Mae and Freddie


Mac have issued new guidelines for loan approval based on the state of the community’s infrastructure.


The consequences of aging infrastructure and a lack of proper planning are still being felt


These legal changes reflect the critical need for condominium boards to become more conscientious and diligent about planning and funding their reserves to adequately meet future maintenance requirements.


Track Inventory, Financials, and Projects


Typically, you will need expert help to put your reserve study to work for you. While there are individual tools available to perform the functions of tracking inventory, financial planning, and project tracking, there is an advantage if you can integrate these actions with your reserve study.


Real-time access to data is helpful in identifying trends or deficiencies.


Real-time access to data is helpful in identifying trends or possible deficiencies thereby forewarning the board that a course correction may be necessary sooner rather than later. Associations tend to benefit most from systems that support active inventory management, capital planning flexibility, and project management tracking. Implementing these tools, and understanding the reasons to use them, will help you and your board establish a successful plan and stick to it.


Figure 3: Clearly Demonstrate Reasons for Decisions— Boards need to be able to clearly demonstrate through data why decisions are being made, and the consequences of not making those decisions.


24 Community Associations Journal | November–December 2022


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