Conventional wisdom says you should fully fund your reserves. But it’s hard: humans aren’t wired to save for the future, nor does it always make good sense from an investment perspective. Here’s a different approach to condominium reserves and funding major projects.
California law requires HOAs to do a condo reserve study every three years. The study can include a daunting list of minor components while leaving gaping holes—and unexpected expenses to be covered by special assessments.
Almost two years after CondoWonk reported that a little-known electric rate could lower HOA common area electric bills, an LADWP spokesperson acknowledges that its website provides no information. Instead, LADWP’s website refers only to a residential rate that causes bills to spike in the summertime.
Condominiums may save money on common area electricity by switching rates, but LADWP’s website won’t tell you about it. This article, a companion to LADWP Electricity Rates: One that may Save your HOA Money is Still Secret, gives step-by-step instructions for switching rates.
Most condo units for sale in Los Angeles are in buildings that are more than 30 years old. They may offer nicely remodeled units with generous space, but older buildings need more maintenance. Here’s advice on issues buyers are likely to find while shopping for a condo unit in older buildings.
Condominium association policies are classified as commercial, not residential. That means condo associations are not guaranteed the consumer protections provided to single-family homes—including a moratorium on cancellations in areas near Los Angeles burn areas.
Given the reality of multi-million-dollar deductibles that may exceed actual damages, even HOAs that carry expensive earthquake policies may not have meaningful coverage. Boards can consider dropping the coverage—if their CC&Rs let them.
To pass electrical inspection, you may be required to install a protective bollard for an EV charger. Here’s how to challenge that expensive and often unnecessary requirement, plus updates on electrical room safety repairs and how to process EV charging applications within an HOA.
Organics recycling is now mandatory in California, including for condo buildings. Your waste hauler’s rules may offer a less messy method for compliance.
California Law 4745 requires HOAs to allow owners to install EV chargers, even in aging buildings with limited electrical capacity. After a fire in the electrical room, a board explored its options, including third-party stations, Level 1 “trickle charging” and Level 2 chargers with devices to prevent overloading capacity.