Reserve Study

New legislation requires HOAs to conduct a reserve study. This law can be found in Utah code Title 57 Chapter 8a Section 211 (http://le.utah.gov/~code/TITLE57/htm/57_08a021100.htm)

In summary, the purpose of the legislation is to provide a study that will determine the amount of money needed to "cover the cost of repairing, replacing, and restoring common areas that have a useful life of three years or more, but excluding any cost that can reasonably be funded from the association's general budget or from other association funds."

The Association engaged ARC to perform this study on our behalf. The study was completed in April 2011 and can be downloaded for your review. Download the Reserve Study here (11,622 KB, containing 38 pages).

ARCs reserve study suggests that the HOA should have $11,000 in its reserve for the calendar year 2011. Based on the 234 homes and vacant lots in Copperleaf, the Villas, Sienna Heights, and the Garden Homes, each homeowner and developer would need to contribute $47 per unit this year, or $3.92 per month. This would be in addition to the $10.00 per month existing assessment. The Board has decided NOT to fund the reserve account at this time. As shown on the Monthly Assessment page, the HOAs revenue is less than its expenses. Funding the reserve account at this time would only widen the gap betwen its revenue and expenses. It is hoped that more neighborhoods will be developed in the next few years, thus generating enough revenue to be self-sufficient and to allow for a reserve study.

 

 

 

Sienna Hills

Master HOA

Developers

General

Last Updated: June 2011