Know which associations are covered
Start with a list of every association in the portfolio and mark which statute applies. Condominiums of three or more units follow ORS 100.175. Planned communities follow ORS 94.595, except Class II communities created on or after January 1, 2002. For any planned community where the class is unclear, ask the association's attorney once and note the answer in the file.
Put the review on the budget calendar
The yearly update is most useful a month or two before each association's budget is drafted, because the board can then adjust reserve contributions without an owner vote. Work backwards from each fiscal year end:
- three to four months out: confirm the kind of study needed this year and request the firm's engagement letter;
- two to three months out: send the reserve balance, work completed and new bids;
- six to eight weeks out: receive the draft and send board questions back;
- budget meeting: the final study and its recommended contribution go in the packet.
Keep one reserve folder per association
Most of the delay in a reserve study comes from chasing documents. A folder per association, kept up through the year, holds:
- the recorded declaration, plat and amendments;
- the current study and the maintenance plan;
- every reserve expense with its invoice and a line on what was done;
- bids and proposals for upcoming work;
- warranties, with their maintenance conditions and expiry dates;
- year-end reserve balances and investment statements.
With that folder, a desk update is mostly a matter of handing it over.
Group the work where you can
Firms quote partly on travel and site time. If several associations in one area are due for a site visit in the same season, asking one firm to schedule them together can bring the fee down, especially outside the Portland area. Multi-year agreements, covering a full study and the following updates, also save re-tendering every association every year. Compare fees with the estimator.
Presenting to the board
Boards respond to a short summary more than to a long report. Ask the firm for a one-page summary with the percent funded, the recommended contribution and the next five years of major work, and for someone to join the budget meeting when the numbers change sharply. If owners are facing a special assessment, a site-visit update gives the board firmer ground.
Sending more than one association
Use the form for the first association and add the others in the notes on the last step: name, ZIP code, number of homes and when each budget is due. See who does reserve studies for the questions worth asking any firm.