reserve components are not failing prematurely (appear to be meeting their expected life span) and 2) that predictions as to anticipated costs, interest income, and inflation remain valid. A reserve study will also confirm the amounts currently on hand, and whether increased contributions are necessary to meet expected costs.
Whether structural evaluation or invasive testing are appropriate depends on the component, construction, and age of the association. Transition and reserve studies generally describe their scope, and within them, may recommend further structural evaluations or forensic analysis. This advice is sometimes contained in a narrative enumerating limitations, exclusions, or exceptions. Structural evaluations are not limited to high rise concrete and steel, and may be necessary during transition or any time thereafter. Stormwater management systems, roads, decks
and many other building components all contain “structural aspects”. It is thus essential to work with the engineer (during a transition study or a reserve study) to determine whether, and the extent to which, further investigation of a specific item of construction is indicated. As stated above, these recommendations should be evaluated and followed.
As volunteers, board members take on significant responsibilities; serving is serious business. While this article does not address common expenses and the constraints on (and often vehement objection to) increases in assessments to fund them, the standard of care requires due diligence and reasonable inquiry. Board members need not be experts; they should recognize, however, “what they don’t know”. The reliance on experts is not only an important factor of meeting a
legal standard, it provides boards with the information necessary to
make and support difficult and impactful decisions (and may reduce the number of sleepless nights).
FOOTNOTE 1 A reserve study may also include a
review of the governing documents to confirm the unit owner’s and association’s respective responsibilities concerning various building components. It is not unusual for reserve studies to reveal that previous assumptions as to responsibilities are incorrect – that funds are 1) being reserved for items that are actually the responsibility of the unit owner, or 2) that components for which the association is responsible are omitted.
ABOUT THE AUTHOR Stefan Richter, Esq., CCAL is a Shareholder with CAI Diamond Partner Clemons Richter & Reiss, P.C. Mr. Richter is past president of the CAI’s Keystone Chapter, former delegate and chair of the PA Legislative Action Committee (PA LAC), and currently serves on the chapter’s Communications & Content Committee. Mr. Richter can be contacted via email at:
srichter@clemonslaw.com.
raises money to contribute to candidates for the state legislature who support people living, governing, and working in community associations.
gives our members a united voice to effectively shape policy issues that are critical to the community association housing model.
allows our members to pool their resources to create the largest impact possible in support of CAI’s public policies for better communities..
LEARN MORE & MAKE A CONTRIBUTION
www.cai-padelval.org/advocate/cai-pennsylvania-pac
www.cai-padelval.org 25
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48
