By Robert M. Nordlund, PE, RS Association Reserves, Inc. December 2011
It all started out so innocently, with a phone call asking if we knew about reserves at condominium Associations. It was the attorney of a Developer. They were being sued by the Association for an outrageous sum, for failure to set aside appropriate Reserves. They wanted our expert help to see if the damage claim had any substance.
The Association was about five years old and had been functioning on the Developer’s initial budget for all those years. Finally, the Association had reached a point where some significant Reserve projects were “due”, like deck sealing and their first repainting project. They were dismayed to discover that those two projects alone would completely drain their Reserve Fund. To make matters worse, there were expensive asphalt and roofing projects now just a few short years away. No wonder the Association panicked and called their attorney!
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