CA Law Day A Smashing Success! By Brian P. McLean, Leahy.ps
About 250 of us enjoyed our day together on Saturday discussing the current legal trends and issues facing homeowners and their associations. Topics ranged from contracts to foreclosures. The highlight of the day for me was listening to one owner describe in simple terms why associations should fund their reserves (rather than wait to impose a lump special assessment at some future date). “People should pay to use common assets as they’re using them up.”
I think it’s important that Associations maintain current reserves studies to know and understand the true costs of ownership.
It has, however, been less important to me that the law require associations to adequately fund reserves, although I frequently recommend to my associations that they collect money on a regular basis to fund future large, long-term capital maintenance, repair, and replacement expenses.
I suppose this is a difficult legislative climate in which to convince lawmakers to require owners to fund adequate reserves. Even our own Legislature failed to plan for a future downturn and, again, is turning to tax increases to fund critical essential state services such as underwater basket weaving.