30 YEAR RESERVE ACCOUNT
Is the Legislation interested in limiting the Reserve Account for Arizona HOAs to 10, 15, or 20 years instead of the 30 year the Board says are “industry standards”?
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LJ,
While I can’t speak for the legislature, the purpose of a reserve study is to develop a long-range plan for the future capital improvements needed by the community. You want as long a view as possible knowing that the further out you go the less accurate any predictions can be. That is why all long-range plans have to be reviewed on a short-range frequency of at least 5 years to ensure that future predictions are still valid. All I can tell you is that I would never propose such a requirement as I do not believe that it will ever be in the best interest of the communities to do so. When I did the long-range plan for the community where I was the board Treasurer, I did a projection that went out 80 years, and built a spread sheet to cover that same time period.
Dennis