Stone Mountain Corporation
Re$erve Studies


The following is a sampling of reserve study articles written by Chris Andrews, starting with Common Ground Magazine in 1997, and subsequently in other publications:

“We’ve Received Our Reserve Study – Now What?” -- 1997 Common Ground Magazine, Community Associations Institute

The preceding article was written because it’s not uncommon for HOA Board members (and/or managers) who don’t understand how to utilize the reserve study in budgeting and financial planning for their associations.

“Take an Active Role in Your Reserve Study” -- 1998 Common Ground Magazine, Community Associations Institute

This article was written after we had encountered many reserve studies from clients who were dissatisfied with their prior reserve study company. Scant attention to detail, incorrect assumptions, poor customer service. So the intent of this article was to empower HOA managers and directors to get the most out of their reserve study and ensure that it is accurate.

"Why most HOAs Do NOT need to be 100% Funded” -- 2011 SCHA Newsletter

This article represented a breakthrough in reserve funding philosophy.

While most reserve study companies (and State Legislators) continue place an inordinate focus on being 100% funded for depreciation-to-date, this article mathematically proves why associations rarely need to be 100% funded for depreciation-to-date. As it turns out, the key determining factor is whether or not an HOA’s reserve expenses are highly-clustered in any one year in their 30-year Cash Flow Projection. Of all the reserve study articles you might want to read, this is probably the most important because it is truly novel and will likely have a profound impact on your HOA’s reserve funding philosophy.

"The Myths and Realities of the Percent Funded Estimate” -- May 2002, CAI – Channels of Communication

This article sheds some light on the Percent Funded Estimate -- based on misunderstandings about it among our past clients.

“After Your Reserve Study is Done – How to Defend a Fee Increase” -- 2005 Common Ground Magazine, Community Associations Institute

This article isn’t so much about reserve studies as it is about the “political impacts” of reserve funding increases that trigger overall HOA fee increases. Many HOA directors want to be well-liked and find themselves pressured to cave in to complaints by owners who do not want HOA fees to increase under any circumstances – even if it is the fiscally-prudent thing to do. Read this article and you will be well-prepared with irrefutable retorts.

*Note, however, this article was written before the California Civil Code was revised to require secret ballots for voting. So the part of the article that suggests keeping track of the members who vote against HOA fee increases is no longer relevant because member voting is done confidentially.

"HOA Financial Stability in Mammoth” -- May 2009, Mammoth Times Magazine, Mammoth Lakes, CA

This is an observation of the general reserve fund status of HOAs in the Mammoth Lakes area.

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