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today's economic plan makes it even more challenging then ever to adequately fund
reserves
so in response to our client needs Miller Dodson associates has develop strategic
funding solutions to help minimize the impact of those large increases in
assessments
We know that limitations on delinquencies that are imposed by f_h_a_ imposed by the
commercial banks that those large increases tend to trigger more
assessments a strategic funding solution incorporates all aspects of
incremental funding increases
special assessments if needed a bank loans if needed ordered to come up
with the strategic plan of annual funding
the reserve study merely gives us a snapshot of what our current status is
and tells us where we need to go
the reserve study doesn't tell us how to get there
the intent of the strategic solutions
is so that we can come up with a roadmap of funding that shows are client
exactly how much they have to be putting in each year
and still mitigating the impact of those large special assessments and
large increases
that may result in an increase in delinquencies not necessarily an
increase in the amount of revenues that are collected
for example we recently worked with the client that's a condominium with a
hundred thirty two units
their current funding was fifty eight thousand dollars a year but the reserve
study said they need to be put in a hundred and five thousand dollars a year
into their reserves
the other problem that they have to worry about in addition to this large
increase in reserve assessments
was that they had a ninety five thousand dollar expenditure for the
replacement of their parking deck coating
we were able to work with this client
so that we came up with a plan whereby they used a five-year commercial
bank loan to pay for the ninety five thousand dollar expenditure for the
parking deck coating
they were able to then increase from their fifty eight thousand dollars to sixty
five thousand dollars and then increase to seventy five thousand eighty-five
thousand
basically ten thousand dollars per year
until they got to their hundred and five thousand dollar
reserve level
this not only made it easier for them to sell this whole idea of an increase to
the community but it also made it easier for them to implement the increase
without having to worry about the increase in delinquencies that may come
from doubling their assessments to reserves
so Miller Dodson feel strongly that in today's economic climate having
innovative approaches to funding such as these strategic funding solutions is an
important benefit to our clients and will help them through these tough
economic times
if you'd like to learn more about strategic funding solutions please give
us a call or visit our website