HOA 101: Reserve Studies

Admin

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It never fails. A HOA has major goals for the year, but how much money will they spend? How can the HOA even achieve those goals? Who is going to build the thing they want, or will the Board of Directors raise assessments? What if the HOA doesn’t even have goals? How do they figure that out?


A reserve study is a mechanism to determine what the association’s goals might be and how the association may pay to accomplish those goals. The association must create a budget every year to determine the needs of the association and a reserve study can help the association finalize the total numbers of the budget. 


A reserve study may also be the only way to determine when vital components of the association need to be replaced. Replacement and maintenance could be the most important part of the association’s duties. A condominium association that has increased responsibilities in the infrastructure of the building or buildings will likely be doing reserve studies regularly. If maintenance is not regularly done, the condominium association can see catastrophic outcomes (even fatal) as seen in Florida after a condominium building collapsed.


Reserve studies do not cost a significant amount of money (depending on the common areas and whether the association is a condominium or residential subdivision). In Texas, there is no requirement for annual or regular reserve studies. Some states have requirements that HOAs perform reserve studies every three or five years. Some statutes dealing explicitly with condominium associations discuss reserve studies but no statute specifically requires it be done.  This may change after the building collapse in Florida. Regardless of future requirements, reserve studies do help the association have a broad overview of what needs to be done, how much it will cost, and how much the association already has in their operating account or reserve accounts.

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By Admin December 1, 2025
It is time to put up holiday decorations!! I love this time of year! The week of Christmas, my family and I go out and look at all of the holiday decorations and lights. But, what about the HOA? Some HOAs, that have the budget for decorations, might put up lights and bows in the HOA common area. Most HOAs hire someone to put and take down décor. I am sure a lot of people wish they could hire someone for their own personal decorations. No one wants to get that dreaded letter from the HOA stating that they need to take down decorations. No HOA wants to be considered a scrooge at the holidays either. I read an article from 2019 where a Texas HOA asked a couple to take down their holiday decorations because they were installed too early. The mother was pregnant with their third child and they needed to put the decorations up early because she was due to have her baby a month later. Oops! I think that whole situation could have been avoided if both parties communicated with each other. Here are some tips regarding how to avoid those uncomfortable situations. Draft guidelines if the declarations allow for it. In those guidelines, the HOA can set a timeline for when decorations can be put up and when they need to be taken down (be reasonable!). The guidelines can also address any nuisance concerns (such as lights and other noisy or distracting decorations that can cause issues). Don’t limit the types of decorations or the subject matter. Limiting some colors or certain types of decorations used in specific religions or cultures can actually open the Association to liability. Using specific identifying words in any guidelines can alienate homeowners. The Association should air on the side of caution when prohibiting decorations and the wording should be broad enough to include everyone. Lastly, communicate with each other! If there are decorations that are causing issues, talk to neighbors about it. If you want to install decorations before the guideline dates, call the HOA or management company. Give them the reason why early installation is needed. The point is to be inclusive and keep the Association safe and happy. I hope everyone is safe and happy during the holidays! 
By Admin December 1, 2025