This allows for the aesthetic qualities of the community to be maintained, thereby also enhancing property values. It minimizes the need for special assessments . Insufficient funding may lead to special assessments when major elements must be replaced. A history of past or pending special assessments may hurt property values. It distributes the contributions of old and new owners .
Major items deteriorate with use and age.
Although a roof will be replaced when it is 20 to 25 years old, every owner who lived under that roof should pay a share of its replacement. Accounting standards require proper maintenance of a replacement fund . This guide, called the CIRA guide, specifically states that communities must disclose information about reserve funding policy. CAI is a multidisciplinary alliance, dedicated to the development of effective community associations. The RS designee has a wealth of experience in the diverse aspects of component analysis and financial planning, thus plays a crucial role in maintaining the long-term financial welfare of a community association.