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.
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.
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.
Replacing common area lighting with energy-efficient, long-lasting LEDs can save HOAs significant money on electricity and replacement, with a quick payback and improved appearance. LADWP’s Commercial Direct Install program may replace some lighting for free.
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.
Why is one condo’s monthly dues so much higher than another’s? Taking a hard look at the budget can produce some savings, but differences between buildings and the types of insurance, amenities, utility metering and services lead to inherently different costs.
A new California law, AB-1572, unfairly targets condominium owners by prohibiting the use of potable water on their often tiny patches of “nonfunctional” turf while exempting single-family homes and apartments.