Fund it fully

Based on your reserve study, calculate the contributions needed to reach and maintain 100% funding. Then build those contributions into your regular dues.

100% funding means having enough money set aside right now to cover each asset's share of its eventual replacement, based on its age and remaining useful life. If a roof is halfway through its lifespan, you should have half its replacement cost in reserves.

Some associations aim for 70% and call it adequate. We disagree. 70% means you're planning to come up short. It means someone—current owners or future buyers—will pay more than their fair share. It means you're one unexpected failure away from a crisis.

If you're starting from an underfunded position, you have a choice: increase dues significantly all at once, or create a gradual catch-up plan spread over several years. The right approach depends on your community's financial situation, but the destination is the same.

Some members will push back.

"I'm on a fixed income." Phased increases can help. But low dues that defer costs to future owners aren't a solution—they're a transfer of wealth from future residents to current ones.

"I won't be here in ten years." That's exactly the problem. You're enjoying a well-maintained building today. You should pay for the wear that happens on your watch, not leave it for the next owner.

These conversations are difficult. Have them anyway. The alternative—surprise assessments, deferred maintenance, declining property values—is worse for everyone.