PA Law/Capital Reserve Fund

Started by PaulM • 4 replies • 3494 views

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PaulM (Pennsylvania)
Posts: 1,347

Posted:

We are a new community of 3 years, with many, many problems. The developer did an engineering study on life expectancy of streets, sidewalks, water basin, rainspouts, all the things the assn. is responsible to maintain and repair. A recommended annual amount is to be set aside from common expenses and is to be used ONLY for these repairs.
QUESTION: Our board wants the assn. to engage an engineering company to do another study but we are wondering what the law states. Do we have to have another study done?
Further, the developer is still working with the township on getting the streets, sidewalks, sewer grates DONE RIGHT! even after 3 years. We think a study done now would be totally WORTHLESS. What does 'community law' state, and what do the HOA Talk people think? Please share your experiences. Thanks.

RogerB (Colorado)
Posts: 5,067

Posted:

First get the Developer to do as much correction as possible. Next check on dedicating the streets so a governmental agency will be responsible for them. If you are within a city also try to get them to replace sidewalks, street lights, etc. Try to remove from the HOAs responsibility all such items as possible.

There is no law that I am aware of requiring a long range financial plan, a reserve study, or even maintaining a reserve fund. However, all of these should be done. The only reason I would consider an engineering study at this time is if the Developer's study does not look reasonable and I could get him to pay for it.

PaulM (Pennsylvania)
Posts: 1,347

Posted:

Roger, thanks for your input. To reiterate further, how does an assn. go about getting the streets and sidewalks 'dedicated' to a government agency or the township in which we live. Presently, our assn. has responsibility for all street/repair & maintenance, hence a capital reserve fund. Have any HOA's been able to change this and have the township take responsibility? Where do we go to find out if it can be done?

RogerB (Colorado)
Posts: 5,067

Posted:

Paul, dedication is usually done by the Developer. You can call the County/Township/City Clerk to find out or get referred to the department that handles such matters. You should also have a HOA plat which may have information. If not dedicated you can ask questions to try to find out if this has ever been done. If it has (or hasn't), ask what procedures should be followed to make a request.

JulieS (Georgia)
Posts: 412

Posted:

Who plows the roads when it snows? This may be an indication of whether they are public or private and who is responsible for repairs, etc. I would definitely find this out and also have the developer correct everything before they leave.

As for the reserve study, having a reserve study and reserve funding is the smartest thing an HOA can do. Also, it is very important to have it updated every so often.

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