Whether you’re currently on the hunt for a new home in the Akron, Ohio area, or you recently moved into a deed-restricted property near Medina, Ohio, it’s important to familiarize yourself with the concept of association reserves. Reserves are an association’s savings account, dedicated to replacing shared property (entrance signs, sidewalks, pools, etc.) as it wears out. If an association has enough money in the reserve fund to pay for property maintenance and repairs without having to assess homeowners, they are considered to be fully funded. In accordance with Ohio Association Law, all HOA and condo associations are required to fully fund unless a majority of the association members waive that requirement. There are pros and cons to both fully funding and waiving, which is why unit owners should learn as much as they can before voting on the issue. Fortunately, Grace Property Services LLC near Canton, Ohio has years of experience as a community association manager, which makes this local business uniquely qualified to educate current homeowners and prospective buyers on the subject.

The professionals from Grace Property Services LLC near Canton will tell you that association reserves vary widely. For instance, a condominium association with a clubhouse, pool, and private road will require a very large reserve, while a homeowners association with only a single entrance sign on their grounds will likely need a small one. So, how does an association know how much of a reserve they need? The simple answer is to conduct a reserve study in order to assess the health of the association’s reserves.

In a reserve study, a professional appraising company comes to the association and examines all of its capital items, such as clubhouse features, roads, and other shared property. The age of the items, when they are likely to need replaced, and how much replacement will cost is calculated. A report is given to the board and its community association manager (Grace Property Services LLC), which specifies how much money must be in the reserve account at the start of every year to be considered fully funded.

As previously mentioned, Ohio Association Law requires that all associations fully fund unless a majority of the association members waive that requirement. If an association is not fully funded, or has not had a reserve study done, all unit owners will receive a waiver ballot in the fall. However, if the association does not waive fully funding, the difference between the current reserve fund and what is required to be considered fully funded will be assessed against all homeowners immediately. This figure can be in the thousands or tens of thousands of dollars. For this reason, most boards will recommend that the unit owners waive fully funding.

It’s worth noting that opting to waive fully funding is not a guarantee that there will never be any special assessments. If property maintenance of your Akron or Medina community is required and the funds are not there to cover it, a special assessment will need to be done. The association is obligated to keep the property functional and safe. Any property maintenance or repairs must be made when necessary, and all unit owners are responsible for funding the association.

Grace Property Services LLC works with all boards and associations to try to reach fully funding. Increasing funds to the association reserve gradually can lead to fully funding with a smaller burden on homeowners than a large assessment.  If you’re interested to learn more about your responsibilities as an owner of a deed-restricted property in Akron, Ohio or Medina, Ohio, visit www.gracepropertyservicesllc.com. There you can find additional information about Ohio Association Law requirements, and what is expected of each unit owner in regards to property maintenance. If you have any questions, feel free to give this community association manager a call at their office near Canton, Ohio.

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Grace Property Services LLC
1375 S Main St, Suite 201
North Canton, Ohio 44720
Ph: 234.209.9140
www.gracepropertyservicesll.com