Reserves

According to the Community Association Institute, reserve savings "consists of funds put aside—in reserve—for the replacement of major components of a community’s common property. Typically, the reserves might be used to replace asphalt paving, roofs, central heating and elevators." (see www.caionline.org) Additionally, Forest Glen governing documents establish funding the reserves with 2 months dues emergency fund (per the CCR Article VI, Section 1).

The Alaska Housing Finance Corporation has a slightly different definition for a reserves table. The current board feels this table doesn't adequately support our planning. The Corporation's table is limited to the building structure itself, not the full property (including grounds). The Corporation's table does not allow for calculation of inflation. For these two reasons, we maintain our own Reserves table based on best practices, as well as the more limited Corporation version.

- As of 20 OCT 2017

Page validated: 2/28/2021