Reserve Studies and Their Impacts on POAs

POAs are under increasing pressure regarding their finances. Homeowners, the media and loan providers are asking more questions on the amount of cash POAs have on hand and the amount of deferred maintenance accrued by the association. One of the solutions to help answer these questions comes in the form of a reserve study. Shareholder Noelle Hicks of our Houston Office and Andrew Stoutenburg, Regional Executive Director of Reserve Advisors discuss the reserve study process. Noelle and Andrew breakdown why all POAs should consider a reserve study, what reserve providers are examining during a reserve study, the various funding levels of reserve accounts and what they mean for the POA and more.