What are Reserves?

Every community is made up of elements that require maintenance, and over the long term, replacement. Some elements of Providence HOA that come to mind are building roofs, patios, exterior siding and paint, sewer systems, stairs, rails, some light fixtures, drainage, bearing walls, structural components, utilities that serve two or more units, fire life safety systems, etc. In order to properly plan financially for upkeep of your community, it is necessary to plan ahead and save for the maintenance of Association maintained elements.

A good portion of your monthly assessment goes into the Association’s Reserve account for this purpose. In 2019, that figure was a little over 56%. Providence HOA is fortunate to have a healthy reserves and was over 100% funded when the last study was performed in 2018. Updates are required every year, and a reserves funding plan must be adopted annually, in conjunction with the budget.

At the October meeting, the Board will be adopting the funding plan and overall budget for 2020.