🥱 Tuesdays after a holiday weekend are Hard:

Howdy, and happy Monday Tuesday, folks. Hope you all had a great community easter egg hunt. Did the board approve the new egg prices??? 😰. Here’s a little something in your inbox to start your mornings to make you sound smart to your boss in your upcoming meeting about a meeting 😁 

Understanding Reserve Studies and Why You Should Actually Care

Because the only thing worse than a surprise assessment is realizing your clubhouse roof is held together with duct tape and denial.

💰 What the Heck Is a Reserve Study Anyway?

Picture this: your HOA is a spaceship (stay with us). The Reserve Study is the systems check that tells you whether the engine's about to explode, the airlock is cracked, or you’ve only got 7% oxygen left in the community pool fund.

In other words: A Reserve Study is a long-term budgeting tool that helps your HOA plan for major repairs and replacements — roofs, roads, pools, gates, maybe even those haunted elevators in Building C.

Without it? You're basically playing financial Jenga with your residents' money. Spoiler alert: it ends with crying and a special meeting nobody wants.

📊 Why Reserve Studies Matter (Even Though They May Not Be Your Favorite)

Sure, no one wakes up and says “Wow, I hope today we review roof depreciation models,” but here’s why they matter:

• Avoid Special Assessments: Planning ahead means not ambushing residents with a surprise $3,000 bill.

• Maintain Property Values: Crumbling infrastructure ≠ strong resale value.

• Stay Legally Compliant: Many states require them. Skipping it is a legal facepalm.

• Promote Trust: Residents love transparency — especially when their money’s involved.

📌 Here’s What a Good Reserve Study Should Include:

• Component Inventory – List of major assets (e.g., roofs, plumbing, playgrounds, wine cellar?)

• Condition Assessment – Expert opinion on when things will fail… uh, need repair

• Life Expectancy – For each asset (sadly, not your board’s patience)

• Cost Projections – Because everything gets more expensive except meeting snacks

• Funding Plan – Recommendation for how much you should be saving each year

🛠️ What Your HOA Needs to DO

Here’s what you should be doing as of right now-ish:

• 📅 Schedule a Reserve Study if you haven’t had one in the last 3-5 years (or ever… yikes).

• 💸 Start Funding the Reserve based on the study’s recommendations.

• 📞 Hire a Reputable Firm – Not “Cousin Joe’s Budget Evaluations & BBQ.”

• 📚 Review Annually and update every 3 years minimum.

🎯 The Final Word: Reserve or Regret

Yes, reserve studies are about as thrilling as watching caulk dry, but they’re what separates stable, financially-savvy HOAs from the ones spiraling into chaos, debt, and angry all-caps emails. Be the first group. Plan ahead.

And hey — the next time someone complains at the board meeting, just remind them that without a proper reserve study, your community clubhouse might be repurposed into a lemonade stand to pay for asphalt repairs. 🍋

📰 The Karen Report (HOA News You Didn't Ask For But Should Know)

Here’s what’s been happening across HOA-land this week (April 13–19, 2025):

• Houston HOAs Outpace the National Average
  A recent report reveals that 76.8% of homes in Greater Houston carry HOA fees, significantly higher than the national average of 40.5%. Experts caution that such prevalence may perpetuate socio-economic homogeneity and exclusionary practices reminiscent of redlining, potentially impacting societal diversity and democratic engagement.

• California Consumer Group Sues to Block Insurer Surcharge After LA Fires
  Consumer Watchdog has filed a lawsuit in California to prevent insurers from charging policyholders a one-time fee to recover $500 million in costs linked to the FAIR Plan, the state’s insurer of last resort. The surcharge follows a state order requiring insurers to contribute $1 billion to the FAIR Plan to pay claims associated with the January 2025 Los Angele wildfires.

• Henderson HOA Faces $1.3M Water System Repair Dilemma
  Homeowners at a Henderson townhome community are confronting a hefty $1.3 million charge to repair aging water pipes. The unexpected expense has sparked debates over reserve fund adequacy and the importance of proactive infrastructure maintenance.

• Michigan Law Limits HOA Restrictions on Energy-Saving Efforts
  Effective April 1, 2025, Michigan's new legislation prohibits HOAs from enforcing rules that prevent homeowners from implementing certain energy-saving improvements, such as installing solar panels. While HOAs retain some regulatory authority, they must now accommodate most energy-efficient modifications.

• Seasons HOA Plans Irrigation Startup for April 21
  The Seasons Canal Irrigation for HOA and specified homeowners is scheduled to start on Monday, April 21. Residents are advised to allow irrigation technicians time to fill ponds, test equipment, and ensure systems are functioning correctly.

Have a great week! One more thing….are you going to the CAI Conference in Orlando? So are we. Incognito 😎. Try to find us!