3 Choices To Consider When Making A Big Repair In the Condo Association

The condo board is expected to manage the condo's assets and it works with specialists to identify certain maintenance requirements before setting aside funds to tackle them.  But, what is the condo board supposed to do when it encounters a big repair that far exceeds the funds that were set aside?  In some situations, the board doesn’t have to issue a special assessment, especially when there are other options to consider.

 

The condo board doesn’t have to always rely on their own members to solve every problem.  They can consult with a condo reserve specialist who has a better understanding of the condo's predicament and offer them sound advice on the issue.  Aside from performing an evaluation of the situation and encouraging the board to add the repair to the reserve study as a one-time occurrence, the reserve specialist might propose adjustments to the condo's maintenance strategies. It is important to be transparent with the residents regarding this information by posting the details on the condo website.

 

When a reserve specialist isn’t available, the community website could be used to identify talented individuals that can offer assistance and advice on the matter.  The HOA board is free to search for experts from outside the community.  Not just lawyers but also insurance agents and accountants, as well as contractors that may offer cost-effective solutions.

 

If the repair in question demands immediate attention, the board shouldn’t hesitate to borrow funds from the reserves.  The condo website usually frowns upon this option as it isn’t ideal which is why most associations only take this route as a last resort.  A condo board that borrows from the reserves must ensure that its actions are reflected in the reserve study and they need to pay back that amount.

All communities would like to believe they have prepared adequately for the future.  However, when the unexpected happens and the condo is suddenly facing a big repair, they need to remember that there are multiple options at their disposal.