Department of Professional and Occupational Regulation
9960 Mayland Drive, Suite 400
Richmond, VA 23233-1485
804-367-85 0 www.dpor.virginia.gov
Common Interest Community Board
INTEREST COMMUNITY ASSOCIATION RESALE CERTIFICATE
Section 55.1-2310 of the Resale Disclosure Act in the Code of Virginia requires this standard resale certificate
The unit being purchased is in a development subject to the Virginia Condominium Act, the Virginia Property Owners’ Association Act or the Virginia Real Estate Cooperative Act. Properties subject to these acts are considered “common interest communities” under the law and are governed by common interest community owners’ associations (“association”) Units in common interest communities are subject to the Virginia Resale Disclosure Act that requires disclosure of information about the common interest community and its association on this resale certificate.
Under the Resale Disclosure Act, the Common Interest Community Board establishes the fees that may be charged for preparation and delivery of the resale certificate. No association may collect these fees unless the association (i) is registered with the Common Interest Community Board; (ii) is current in filing the most recent annual report and fee with the Common Interest Community Board pursuant to § 55.1-1835; and (iii) provides the option to receive the resale certificate electronically.
Important Notice for Purchasers
The contract to purchase a unit in a common interest community association is a legally binding document. The purchaser may have the right to cancel the contract after receiving the resale certificate.
The purchaser is responsible for examining the information contained in and provided with this resale certificate. The purchaser may request an update of the resale certificate from the association
A492-05RESALE-v 07/01/2023
Page 1 of 25
RESALE CERTIFICATE
Name of Development: Townhomes at Graham Park
Location of Development (County/City
Association Name:
Association Address:
Lot Address, Number, or Reference
Date Prepared:
The following disclosures are being made pursuant to § 55.1-2310 of the Virginia Resale Disclosure
Act. 1. Contact information:
⎕ Contact information for the preparer of the resale certificate and any managing agent is attached. See Appendix 1
2. Governing documents and any rules and regulations:
⎕ A copy of the association governing documents and rules and regulations are attached. See Appendix 2
3. Restraints on alienation:
There ⎕ is ⎕ is not any restraint on free alienability of any of the units. See Appendix 3
4. Association assessments:
⎕ The association levies assessments payable by the owners to the association for common expenses. See Appendix 4
5. Association fees:
The association ⎕ does ⎕ does not charge fees to the owner of the unit. See Appendix 5
6. Other entity or facility assessments, fees, or charges.
The owner ⎕ is ⎕ is not liable to any other entity or facility for assessments, fees, or other charges due to ownership of the unit. See Appendix 6.
7. Association approved additional or special assessments:
The association ⎕ does ⎕ does not have other approved additional or special assessments due and payable to the association. See Appendix 7 .
8. Capital expenditures approved by the association:
The association ⎕ does ⎕ does not have approved capital expenditures for the current and succeeding fiscal years. See Appendix 8.
9.Reserves for capital expenditures:
The association ⎕ does ⎕ does not have reserves for capital expenditures. See Appendix 9 .
The association ⎕ has ⎕ has not designated some portion of those reserves for a specific project(s). See Appendix 9
10. Balance sheet and income and expense statement:
The association’s most recent balance sheet ⎕ is ⎕ is not attached. See Appendix 10.
The association’s most recent income and expense statement ⎕ is ⎕ is not attached. See Appendix 10
11. Current operating budget of the association:
⎕ The association’s current operating budget is attached. See Appendix 11.
12.Reserve study:
A copy of the association’s ⎕ current reserve study or ⎕ summary of the current reserve study is attached See Appendix 12
13. Unsatisfied judgements and pending actions:
There ⎕ are ⎕ are not unsatisfied judgements or pending actions in which the association is a party that could have a material impact on the association, the owners, or the unit being sold. See Appendix 13
14.Insurance coverage:
The association ⎕ does ⎕ does not provide insurance coverage for the benefit of the owners, including fidelity coverage. See Appendix 14
The association ⎕ does ⎕ does not recommend or require that owners obtain insurance coverage. See Appendix 14.
15. Written notice from the association:
The association ⎕ has ⎕ has not given or received written notice(s) that any existing uses, occupancies, alterations or improvements in or to the unit being sold or to the limited elements assigned thereto violate a provision of the governing documents or rules and regulations. See Appendix 15 .
16. Written notice from a governmental agency:
The Board ⎕ has ⎕ has not received written notice(s) from a governmental agency of a violation of environmental, health, or building code with respect to the unit being sold, the limited elements assigned thereto, or a portion of the common interest community that has not been cured. See Appendix 16
17. Board meeting minutes:
⎕ A copy of any approved minutes of meetings of the Board held during the last six months is attached. See Appendix 17.
⎕ Not applicable. See Appendix 17.
18. Association meeting minutes:
A copy of any approved or draft minutes of the most recent association meeting ⎕ is ⎕ is not attached See Appendix 18
19. Leasehold estates:
There ⎕ is ⎕ is not an existing leasehold estate affecting a common area or common element in the common interest community. See Appendix 19
20. Occupancy limitations:
The association ⎕ does ⎕ does not have any limitation(s) in the governing documents on the number or age of persons who may occupy the unit as a dwelling. See Appendix 20.
21. United States flag restrictions:
The association ⎕ does ⎕ does not have any restriction(s), limitation(s), or prohibition(s) on the right of an owner to display the flag of the United States, including any reasonable restrictions as to size, time, place, and manner of placement or display of such flag. See Appendix 21.
22. Solar energy restrictions:
The association ⎕ does ⎕ does not have any restriction(s), limitation(s), or prohibition(s) on the right of an owner to install or use solar energy collection devices on the owner’s unit or limited element. See Appendix 22
23. Sign restrictions:
The association ⎕ does ⎕ does not have any restriction(s), limitation(s), or prohibition(s) on the size, placement, or duration of display of political, for sale, or any other signs on the property. See Appendix 23.
24. Parking or vehicle restrictions:
The association ⎕ does ⎕ does not have any parking or vehicle restriction(s), limitation(s), or prohibition(s) in the governing documents or rules and regulations. See Appendix 24
25. Home-based business restrictions:
The association ⎕ does ⎕ does not have any restriction(s), limitation(s), or prohibition(s) on the operation of a home-based business that otherwise complies with all applicable local ordinances. See Appendix 25 .
26. Rental restrictions:
The association ⎕ does ⎕ does not have any restriction(s), limitation(s), or prohibition(s) on an owner’s ability to rent the unit. See Appendix 26.
An accountant’s statement as to the deductibility for federal income tax purposes by the owner of real estate taxes and interest paid by the association ⎕ is ⎕ is attached. See Appendix 27
28. Pending sales or encumbrances:
There ⎕ is ⎕ is not a pending sale(s) or encumbrance of common elements. See Appendix 28
29. Secondary mortgage market agency approvals:
There ⎕ is ⎕ is not any known project approval(s) currently in effect issued by secondary mortgage market agencies. See Appendix 29.
30. Certification:
⎕
The association has filed with the Common Interest Community Board the annual report required by law. See Appendix 30.
The name, address, and phone numbers of the preparer of the resale certificate and any managing agent are required to be disclosed under § 55.1-2310.A.1. of the Resale Disclosure Act.
Preparer of the resale certificate:
Name:
Company
Mailing Address
Phone Number
Email
Managing Agent:
Name:
Company
CIC Manager License No. (if applicable)
Mailing Address
Phone Number
Email
⎕ Not applicable. The association does not have a managing agent.
The governing documents and any rules and regulations of the association are required to be disclosed under § 55.1-2310.A.2. of the Resale Disclosure Act.
The following are attached in this Appendix:
⎕ Association governing documents (required)
⎕ Rules and regulations
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APPENDIX 3
A statement disclosing any restraint(s) on the alienability (e.g., transfer, sale, or lease) of the unit for which the resale certificate is being issued is required under § 55.1-2310.A.3. of the Resale Disclosure Act.
⎕
Article/Section __________ creates a right(s) of first refusal or other restraint(s) on free alienability of the unit.
⎕ Not applicable.
APPENDIX 4
A statement of the amount and payment schedules of assessments and any unpaid assessments currently due and payable to the association is required under § 55.1-2310.A.4. of the Resale Disclosure Act.
⎕ The association levies assessments, payable according to the following schedule:
⎕ monthly, in the amount of $
⎕ quarterly, in the amount of $
⎕ periodic, ____________________, in the amount of $_____________ Describe interval
Current assessment due: $ Due Date Unpaid assessments: $
⎕ The association levies an assessment in the amount of $_____________ upon transfer of a unit.
APPENDIX 5
A statement of any other fees due and payable by the owner of the unit is required under § 55.1-2310.A.5. of the Resale Disclosure Act.
⎕ Other fees due: $ Description
⎕ Unpaid fees: $ Description
⎕ Not applicable. There are no other fees due and payable by the owner of the unit.
APPENDIX 6
A statement of any other entity or facility to which the owner of the unit being sold may be liable for assessments, fees, or other charges due to the ownership of the unit is required under § 55.1-2310.A.6. of the Resale Disclosure Act.
Entity/Facility Name
Amount Due
⎕ Not applicable.
APPENDIX 7
A statement of the amount and payment schedule of any approved additional or special assessment and any unpaid approved additional or special assessment currently due and payable is required under § 55.12310.A.7. of the Resale Disclosure Act.
⎕ Additional or special assessment due: $ Due Date
⎕ Unpaid additional or special assessment due: $
⎕ Not applicable.
APPENDIX 8
A statement of any capital expenditures approved by the association for the current and succeeding fiscal years is required under § 55.1-2310.A.8. of the Resale Disclosure Act.
⎕ Capital expenditures approved by the association for the current and succeeding fiscal years are :
⎕ Not applicable
A statement of the amount of any reserves for capital expenditures and of any portions of those reserves designated by the association for any specified projects is required under § 55.1-2310.A.9. of the Resale Disclosure Act.
Total amount of association reserves $_________________________________________
Amount of total reserves designated for specific projects (attach list or complete below):
The amount of any reserves for specified projects is contained in Appendix 12. ⎕ Not applicable.
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The most recent balance sheet and income and expense statement, if any, of the association are required to be disclosed under § 55.1-2310.A.10. of the Resale Disclosure Act.
⎕ The most recent balance sheet and income and expense statement for the association are attached.
⎕ The most recent balance sheet and income and expense statement for the association are not attached.
[ THIS SPACE INTENTIONALLY LEFT BLANK]
The current operating budget of the association is required to be disclosed under § 55.1-2310.A.11. of the Resale Disclosure Act.
The current operating budget of the association is attached.
[ THIS SPACE INTENTIONALLY LEFT BLANK]
The current reserve study, or a summary of such study, is required to be disclosed under § 55.1-2310.A.12. of the Resale Disclosure Act.
⎕ The current reserve study of the association is attached.
⎕ A summary of the current reserve study of the association is attached.
⎕ Not applicable. A reserve study is not yet required.
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A statement of any unsatisfied judgments against the association and the nature and status of any pending actions in which the association is a party and that could have a material impact on the association, the owners, or the unit being sold are required under § 55.1-2310.A.13. of the Resale Disclosure Act.
⎕ There are unsatisfied judgements against the association or pending action(s) in which the association is a party and that could have a material impact on the association, the owners, or the unit being sold. Describe below
⎕ Not applicable.
A statement describing any insurance coverage provided by the association for the benefit of the owners, including fidelity coverage, and any other insurance coverage recommended or required to be obtained by the owners is required under § 55.1-2310.A.14. of the Resale Disclosure Act.
⎕ Insurance coverage provided by the association for the benefit of the owners, including fidelity coverage :
Description of insurance
Certificate of Insurance or other documentation attached.
See Article/Section ____
Certificate of Insurance or other documentation attached.
See Article/Section __
Certificate of Insurance or other documentation attached.
See Article/Section __
⎕ Any other insurance coverage recommended or required to be obtained by the owners can be found in Article/Section ________________________________________________.
⎕ Not applicable.
[ THIS SPACE INTENTIONALLY LEFT BLANK]
A statement as to whether the board has given or received written notice that any existing uses, occupancies, alterations, or improvements in or to the unit being sold or to the limited elements assigned thereto violate any provision of the governing documents or rules and regulations together with any copies of that notice (s) is required under § 55.1-2310.A.15. of the Resale Disclosure Act.
⎕ Written notice(s) attached.
⎕ Not applicable
[
THIS SPACE INTENTIONALLY LEFT BLANK]
A statement as to whether the board has received written notice from a governmental agency of any violation of environmental, health, or building codes with respect to the unit being sold, the limited elements assigned thereto, or any other portion of the common interest community that has not been cured is required under § 55.1-2310.A.16. of the Resale Disclosure Act.
⎕ Written notice(s) attached.
⎕ Not applicable.
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APPENDIX 17
A copy of any approved minutes of meetings of the board held during the last six months is required to be disclosed under § 55.1-2310.A.17. of the Resale Disclosure Act.
⎕ A copy of any approved minutes of meetings of the board held during the last six months are attached.
Not applicable
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A copy of any approved or draft minutes of the most recent association meeting is required to be disclosed under § 55.1-2310.A.18. of the Resale Disclosure Act.
⎕ A copy of any approved or draft minutes of the most recent association meeting are attached.
⎕ Not applicable
[
THIS SPACE INTENTIONALLY LEFT BLANK]
APPENDIX 19
A statement of the remaining term of any leasehold estate affecting a common area or common element, as those terms are defined in §§ 55.1-1800, 55.1-1900, and 55.1-2100 in the common interest community and the provisions governing any extension or renewal of such leasehold are required under § 55.1-2310.A.19. of the Resale Disclosure Act.
⎕ Not applicable
⎕ The remaining term of the leasehold estate established in the attached document(s) is ______.
[ THIS SPACE INTENTIONALLY LEFT BLANK]
APPENDIX 20
A statement of any limitation(s) in the governing documents on the number or age of persons who may occupy a unit as a dwelling is required under § 55.1-2310.A.20. of the Resale Disclosure Act.
⎕
Article/Section __________ of the ____________________* describes any limitation(s) on the number or age of persons who may occupy the unit as a dwelling.
A statement setting forth any restriction(s), limitation(s), or prohibition(s) on the right of any owner to display the flag of the United States, including reasonable restrictions as to size, time, place, and manner of placement or display of such flag is required under § 55.1-2310.A.21. of the Resale Disclosure Act.
⎕
Article/Section __________ of the ____________________* describes any restriction(s), limitation(s), or prohibition(s) on the right of any owner to display the flag of the United States, including reasonable restrictions as to size, time, place, and manner of placement or display of such flag.
A statement setting forth any restriction(s), limitation(s), or prohibition(s) on the right of any owner to install or use solar energy collection devices on the owner’s unit or limited element is required under § 55.12310.A.22. of the Resale Disclosure Act.
⎕
Article/Section __________ of the ____________________* describes any restriction(s), limitation(s), or prohibition(s) on the right of any owner to install or use solar energy collection devices on the owner’s unit or limited element
A statement setting forth any restriction(s), limitation(s), or prohibition(s) on the size, placement, or duration of display of political, for sale, or any other signs on the property is required under § 55.1-2310.A.23. of the Resale Disclosure Act.
⎕
Article/Section __________ of the ____________________* describes any restriction(s), limitation(s), or prohibition(s) on the size, placement, or duration of display of political, for sale, or any other signs on the property.
A statement identifying any parking or vehicle restriction(s), limitation(s), or prohibition(s) in the governing documents or rules and regulations is required under § 55.1-2310.A.24. of the Resale Disclosure Act.
A statement setting forth any restriction(s), limitation(s), or prohibition(s) on the operation of a home-based business that otherwise complies with all applicable local ordinances is required under § 55.1-2310.A.25. of the Resale Disclosure Act.
⎕ Article/Section __________ of the ____________________* describes any restriction(s), limitation(s), or prohibition(s) on the operation of a home-based business that otherwise complies with all applicable local ordinances
A statement setting forth any restriction(s), limitation(s), or prohibition(s) on an owner’s ability to rent the unit is required under § 55.1-2310.A.26. of the Resale Disclosure Act.
⎕ Article/Section __________ of the ____________________* describes any restriction(s), limitation(s), or prohibition(s) on the owner’s ability to rent the unit.
In a real estate cooperative, an accountant’s statement, if any was prepared, as to the deductibility for federal income tax purposes by the owner of real estate taxes and interest paid by the association is required under §55.1-2310.A.27. of the Resale Disclosure Act.
⎕ An accountant’s statement as to the deductibility for federal income tax purposes by the owner of real estate taxes and interest paid by the association is attached.
⎕ Not applicable
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A statement describing any pending sale or encumbrance of a common element(s) is required under § 55.12310.A.28. of the Resale Disclosure Act.
⎕ Any documents pertaining to a pending sale or encumbrance of a common element(s) are attached.
⎕ Not applicable
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APPENDIX 29
A statement indicating any known project approvals currently in effect issued by secondary mortgage market agencies is required under § 55.1-2310.A.29. of the Resale Disclosure Act.
The common interest community is known to be currently approved (or mortgages secured by units in the common interest community are eligible for purchase) by the secondary mortgage market agencies checked below:
⎕ Not applicable
APPENDIX 30
Certification that the association has filed with the Common Interest Community Board the annual report required by law, including the filing number assigned by the Board and the expiration date of such filing are required to be disclosed under § 55.1-2310.A.30. of the Resale Disclosure Act.
⎕
Certification that the association has filed the required annual report with the Common Interest Community Board is attached. *
Association Filing (Registration) number assigned by the CIC Board
Filing (Registration) Expiration date
*A copy of the registration issued by the Common Interest Community Board is sufficient for the certification.
Balance Sheet Comparison
Townhomes At Graham Park HOA Inc.
c/o Theoharis Management, LLC Washington, DC 20009
Meeting Date: Date ARB Decision Sent to Homeowner:
THE TOWNHOMES AT GRAHAM PARK HOMEOWNERS ASSOCIATION EXTERIOR MODIFICATION APPLICATION
To: The Townhomes at Graham Park Homeowners Association Architectural Review Board C/o Theoharis Management 2120 16th Street N.W., Suite 205 Washington, D.C. 20009 (202)387-0881 (office) (202)318-8823 (fax) GrahamPark@theoharis.com (email)
Name: Phone (W):
E mail: Phone (H):
Property Address: Lot:
Directions:
The Governing Documentas of the Association require that you submit to the Architectural Review Board for approval, all proposed exterior additions, changes or alterations to your house and lot. In order to be considered by the Architectural Review Board your application must include the following:
Plat Plan (survey) of your lot, with location of proposed modification marked
Sketches, Photographs, catalog illustrations
Dimensions and materials for the proposed modification
Colors of proposed modification
For decks, please include a plan view (view from roof) and an elevation view (view from rear and sides)
Signatures from all adjacent neighbors
An application submitted without all required submissions will be considered incomplete. In such case, the Architectural Review Board review period will not commence until all required submissions have been provided. Other exhibits may be requested to permit adequate evaluation of the proposed change. If you have any questions regarding the required submissions or the application process, you are advised to seek guidance prior to submission of an application.
Description of Proposed Modification: (Please print or type)
Describe all proposed improvements, alterations, or changes to your lot or home:
Description of Modification (continued):
ESTIMATED STARTING DATE OF CONSTRUCTION:
ESTIMATED COMPLETION DATE:
Neighbors' Acknowledgments:
You are requested to obtain the signatures of all lot owners whose lots are adjacent to your lot. Signature by your neighbors indicates an awareness of your proposed change and does not constitute approval or disapproval on their part.
Name:
Address:
Name:
Address: Lot/Block Lot/Block
Signature:
Name:
Address:
Signature:
Name:
Address: Lot/Block Lot/Block
Signature:
Owners' Acknowledgments:
I/we understand and agree to all of the items below:
Signature:
1.That approval by the Architectural Review Board shall in no way be construed as to pass judgment on the correctness of the location, structural design, suitability of construction, materials, water flow or drainage, location of utilities, or other qualities of the proposed change being reviewed.
2.That approval by the Architectural Review Board shall in no way be construed as to pass judgment on whether the proposed change being reviewed is in compliance with the applicable building and zoning codes in which the property is located.
3.That approval of any particular plans and specifications or design shall not be construed as a waiver of the right of the Architectural Review Board to disapprove such plans and specifications, or any elements or features thereof, in the event such plans are subsequently submitted for use in any other instance.
4.That no work on the proposed change shall begin until written approval of the Architectural Review Board has been received by me; that, if work is begun prior to approval, I may be required to return the property to its former condition at my own expense if this application is disapproved wholly or in part; and I may be required to pay all legal expenses incurred.
5. That there shall be no deviations from the plans, specifications, and location approved by the Architectural Review Board without prior written consent of the Architectural Review Board; any variation from the original application must be resubmitted for approval.
6. That I/Owner authorizes members of the Architectural Review Board or Managing Agent to enter upon my Property to make one or more routine inspection(s), if necessary. At this time, you will be issued a Certificate of Compliance. Your modification is not complete until this is issued.
7. That construction or alterations in accordance with the approved plans and specifications must commence within 6 months of the approved date of this application and be completed within 12 months of the approved date, otherwise the approval by the Architectural Review Board shall be deemed conclusively to have lapsed and to have been withdrawn.
8. That it is my responsibility and obligation to obtain all required building permits, to contact Miss Utility, and to construct the improvements in a workmanlike manner in conformance with all applicable building and zoning codes in which the property is located.
9. That I am responsible for any damage and all cost to repair Community Property and any other private or public property that results from the proposed modification.
10. That I am responsible for obtaining the approval of the County of Fairfax, the Commonwealth of Virginia and/or any other governmental or regulatory authority as applicable or required by law.
Owner/Applicant Signature Date
Co-Owner/Applicant Signature Date
For ARB Use Only:
Pursuant to Article III, Section 4 of The Townhomes at Graham Park Homeowners Association, Inc. Declaration, the ARB is granted the authority to approve, modify or disapprove the plans and specifications for the architectural change herein submitted.
Approved – Plans and Specifications submitted in this application meet the requirements of all current Bylaws, documents, Declaration, and rules and regulations of The Townhomes at Graham Park Homeowners Association.
Comments:
Conditional approval, subject to the following conditions and/or modifications – Plans and Specifications submitted in this application meet the requirements of all current Bylaws, documents, Declaration, and rules and regulations of The Townhomes at Graham Park Homeowners Association, only if the change incorporates the following conditions and/or modifications:
Modifications:
Comments:
Disapproved – Plans and Specifications submitted in this application do not meet the requirements of current Bylaws, documents, Declaration, and/or rules and regulations of The Townhomes at Graham Park Homeowners Association.
Comments:
Disapproved as Incomplete – Further information is required before this application can be approved. Please resubmit this application with the following additional information:
Comments:
Chair Date
ARB
THE TOWNHOMES AT GRAHAM PARK HOMEOWNERS ASSOCIATION SUMMARY OF ARCHITECTURAL REVIEW BOARD (ARB) PROCEDURES
1. Unless otherwise permitted under standards adopted by the ARB, no exterior addition to, change or alteration shall be made to any structure or landscape until the complete set of plans and specifications of the proposed change shall have been submitted in writing to and approved in writing by The Townhomes at Graham Park ARB.
2. For changes or additions that require ARB approval, homeowners should complete an Exterior Modification Application request form available from Theoharis Management. Submissions to the ARB must be in writing and include complete plans and specifications showing the location, nature, shape, height, material, color, type of construction, or the type and size of planters, plantings and shrubbery, and any other proposed form of change (including any other information specified by the ARB). For fences or items to be constructed or installed, a readable copy of the plat for the home is required. It is suggested that either brochures be provided or addresses where similar items have been constructed or an installation exists. For color changes on paint, a sample of the desired color is required.
3. After fully completing the Exterior Modification Application, the application should be submitted to Theoharis Management, who will in turn provide it to the ARB for review.
4. When a change or addition requires governmental approval, the homeowner should submit an application to the governmental authority simultaneously with submitting an application to the ARB. The homeowner is responsible for processing the application with the governmental authority, at its sole cost and expense. The ARB has the absolute right to disapprove any application regardless of any approvals obtained by a homeowner from a governmental authority. The ARB will consider granting conditional approval prior to the homeowner obtaining the necessary permits and/or approvals from governmental authorities. The homeowner must provide the ARB with copies of all correspondence with the governmental authority related to the application, including the decision made by the governmental authority.
5. The homeowner shall solely be responsible for all costs and expenses related to obtaining necessary governmental approvals, as well as all plans and permits. In addition, the homeowner shall pay the cost of any architect or engineer engaged by the ARB to review proposed plans.
6. You will be notified by email from Theoharis Management as to the status of your Application for Change (i.e., approved, conditional approval, disapproved, additional information needed) usually within seven (7) business days following the meeting.
7. Upon completion of the approved improvement to your home (work must commence within six (6) months of approval and be completed within twelve (12) months of approval), notify Theoharis Management so that an inspection of the completed work can be done by a member of the ARB.
8. Following this inspection, if the work completed conforms to the approved Exterior Modification Application, a letter of compliance will be sent by Theoharis Management. Keep this paperwork for your records, as it documents for you and any future owners of the property that the work is in compliance with the ARB guidelines.
9. If your Exterior Modification Application is not approved by the ARB, you may appeal this decision to the full Board of Directors at their next regular meeting. Such request for appeal must be submitted to Theoharis Management in writing within thirty (30) days of your receipt of the disapproved application so that it may be included in the meeting agenda.
In Attendance – Property Management and Fairfax County Representatives
§ John Theoharis, President of Theoharis Management
§ Christina Theoharis, Property Manager with Theoharis Management
§ Gloria Muchina, Property Manager with Theoharis Management
§ Conrad Mehan, Representative of the Sanitary District Branch of Fairfax County
§ Lainie Cooke, Representative of the Sanitary District Branch of Fairfax County
I. Call to Order
The Board of Directors for the Townhomes at Graham Park Homeowners Association conducted a meeting on Tuesday, March 25, 2025. The meeting was convened using Zoom technology, and was called to order at 7:07 p.m.
II. Proof of Notice
Ms. Theoharis confirmed that notice of the March 25, 2025 Board of Directors Meeting was sent to all owners of record on March 10, 2025 in a manner and timeframe in accordance with the Association’s bylaws. Three reminders were sent thereafter.
III. Proof of Quorum
With all three Board members in attendance, a quorum of the Board of Directors was established.
IV. Approval of Prior Meeting Minutes
Mr. Robertson moved to approve the minutes from the December 5, 2024 Board of Directors Meeting as amended Mr. Hayes seconded. The motion carried unanimously.
V. County “Refuse Fee”
Homeowner Anthony Speziale provided background information about a $550 refuse fee that was erroneously charged to homeowners for trash collection. The fee was charged in error, as the HOA receives trash pickups through a private contract that results in a lower cost to each owner. Homeowners’ property tax statements include a fee specific to Fairfax County trash collection, and the fee should be removed from the property tax statements. The goals are to get the fee removed from owners’ property taxes by December 2024; and for each owner to receive one year of credit A petition will need to be circulated and signed by at least 60% of the ownership to have the fee removed. Mr. Speziale will coordinate that effort, and provide updates to the ownership through Theoharis Management and/or the Board of Directors.
Conrad Mehan and Lainie Cooke, representatives of the Sanitary District Branch of Fairfax County, were in attendance during the March 25, 2025 HOA Board Meeting to provide additional information about the refuse fee and answer questions. Mr. Mehan explained a state law was passed in the 1950’s that allows jurisdictions in the state to create sanitary districts that receive an exclusive service. The jurisdiction has the ability to charge a fee for the service. Sanitary districts must be approved by the Board of Supervisors, and the sanitary district for the Graham Park area was created in 1968. As a result, every resident within the geographic area was subject to a fee, and was to receive county trash service. However, for decades, there were no homes present in the approved sanitary district – only a shopping center. Once Graham Park Plaza was redeveloped and the occupancy permit was issued for constructing residences, the refuse fee was automatically triggered by the tax department – something that was not relayed to the trash collection portion of the county The fee is charged twice per year in July and December, and totaled $550 every six months in 2024. To correct the error, a specific procedure must be followed to request refunds back three years (the
maximum allowed by law). Also according to state law, for any homeowner to get out of an existing sanitary district, a petition must be filed with the Board of Supervisors. As mentioned earlier during the Board Meeting, Mr. Speziale offered to serve as the Petition Coordinator. He will work with Ms. Cooke on the effort Until the petition to exit the sanitary district is approved, the refuse fee will continue to be assessed.
The county representatives responded to questions and comments from homeowners:
§ Inquiring whether signatures will be needed from both homeowners if there is more than one person documented as an owner for the address. Ms. Cooke stated a signature is needed from one of the homeowners on the county’s tax record.
§ Asking whether each homeowner will receive a record from the county. Mr. Mehan replied in the affirmative, but explained each homeowner is not required to respond (although he encouraged them to do so) .
Theoharis Management will provide details and directives to homeowners about what to expect for the opt-out and refund processes.
(The county reps exited the meeting at this juncture at 7:23 p.m.)
VI. Management Report
A. Resident Parking Logistics and Towing: The Homeowners Association is under a Reciprocal Easement Agreement (REA) with Federal Realty Investment Trust (FRIT), the managing entity for Graham Park Plaza. As a result, the HOA pays community area management and parking area management fees every month. Theoharis Management and the Board of Directors understand that the HOA is experiencing issues with towing. Complaints have been received about Henry’s Wrecker Towing Group, the company contracted by FRIT for the commercial area Theoharis and the Board held a working session with the management team from FRIT in an attempt to understand some of the logistics involved with the towing arrangement. The Homeowners Association is contracted with Pete’s Towing. Henry’s should not tow within the HOA’s boundary, and Pete’s should not tow within the commercial areas. However, there has been some confusion about which parking spaces belong to the HOA versus commercial. Ms. Theoharis explained any towing by Henry’s within the HOA was not authorized by the Association. Mr. Barnett summarized the lack of clarity about HOA versus commercial parking. Ms. Hua stated the goal is to disseminate a map of the parking area to clarify what belongs to the Homeowners Association versus what is for commercial use. Mr. Barnett stated some homeowners will be asked to assist with parking within the HOA.
A map was presented with triangles indicating commercial parking, and STOP signs indicating parking for the Homeowners Association. Ms. Hua specifically indicated that the parking spaces near Subway do not belong to the HOA, and the parking spaces behind Phoenix Suites do not belong to the HOA.
Homeowners may park in the 21 spaces between PNC Bank and the Sunoco from 9:00 p.m. to 8:00 a.m., although those spaces are technically for visitor parking. Theoharis and the Board of Directors are working with FRIT to determine how best to label those spaces. Theoharis Management will provide homeowners with a detailed site plan to clarify where homeowners are allowed to park. A Parking Enforcement Policy will be installed that will include permits and signage. Ms. Theoharis will visit the HOA on Wednesday, March 26th to conduct a property walkthrough.
B. Committee Volunteers: Volunteers will be sought to serve on the Association’s Architectural Review Committee (ARC) and Landscaping Committee.
C. Portal: Theoharis will provide details to homeowners about how to access the Association’s informational portal.
D. Transition Study – Request for Proposals (RFP): Theoharis will initiate an RFP to engineering firms to conduct a transition study between the Homeowners Association and the declarant (EYA). The study will only look at the common areas and elements (from the front stoops of the homes outward) to ensure they were implemented according to the Association’s design plans. Any deficiencies will be noted, and a transition study report will be drafted The report will be reviewed by both parties and their representing legal counsel The cost of the transition study will be split between EYA and the HOA
Townhouse at Graham Park Homeowners Association DRAFT Minutes from the Board of Directors Meeting – Tuesday, March 25, 2025
VII. Old Business
No matters of Old Business were raised.
VIII. New Business
No matters of New Business were raised.
IX. Open Forum
Management and the Board of Directors responded to questions and comments from homeowners (with any action items noted in bold italics):
§ Inquiring when the remainder of the neighborhood will be paved and receive parking space striping. Ms. Theoharis will review those matters during her property walk on Wednesday, March 26th.
§ Asking why homeowners are required to perform mandatory backflow testing. Management will provide the county website to owners regarding the required backflow testing.
§ Asking whether the fence at location can be inspected, as it is settling and the door is beginning to lean. Management will ensure the matter is addressed as part of the transition study process.
§ Seeking clarity about the procedure for renting out the spaces behind Subway.
§ Inquiring what must be done to have speed bumps installed in the neighborhood to slow the speed of drivers. Management will confirm the alternative options available.
§ Asking management to communicate with FRIT about delivery trucks arriving too early or too late which causes a disturbance to some residents. Management will ensure the concerns are communicated with FRIT.
§ Asking if it would be possible to have a STOP sign installed from Monticello to grant HOA residents the opportunity to make the traffic light.
§ Reporting leaf blowers are being used late at night in the commercial area (usually near Subway). Management will report the issue to FRIT.
X. Adjournment
The March 25, 2025 Board of Directors Meeting was adjourned at 8:10 p.m.
These minutes were respectfully drafted and submitted by:
Reserve Study
GRAHAM PARK HOMEOWNERS ASSOCIATION
Fairfax, Virginia
Prepared for: BOARD OF DIRECTORS, Graham Park Homeowners Association C/o: John C. Theoharis Theoharis Management LLC 2120 16th Street, NW, Suite 205 Washington, DC 20009
Project #321036
DATE OF SITE VISIT: NONE
DATE OF DRAFT REPORT: APRIL 30, 2021
Prepared by:
I. EXECUTIVE STATEMENT
This Repair and Replacement Reserve Schedule Report has been developed for Graham Park Homeowners Association, for the specific purpose of reviewing the major components and developing a Repair and Replacement Reserve Schedule based on our research and observation of the property. Our report contains two different methods of reserve analysis. The first section presents the Component Method and the second section presents the Cash Flow Method.
The difference between the component method and cash flow method is the component method lists all features of the property that will require repair or replacement over the normal useful life. The estimated cost of the component methodʼs annual contribution is based on the owners requirement to fund repairs or replacements at the time of the site analysis. This may result in short term higher contributions in an effort to catch up short falls in the reserve account. The component method has no means of readjusting the annual contribution after a component is repaired or replaced. For example, a roof requiring to be replaced within the next ten years will require an annual contribution of 10% for each year. After replaced a normal useful life of a roof system is 20 years, which results in an annual contribution of 5%. The cash flow method takes into account the activities on the property and the expenditures expected over the next 30 years. Thereby, allowing an adjustment to the annual contribution rather than over funding the reserve account.
The examination was made following generally accepted visual inspection standards and did not include testing of any equipment or physical conditions unless specific reference is made to such testing. Unless otherwise stated, we have reported only on those items that we were able to observe visually in Level I & Level II evaluations. The inspection did not include removing portions of construction in order to expose concealed conditions. The report is intended to fairly present our professional opinion of the condition of the facility and the component parts to which reference is made in the report Level I and Level II as of the date of this inspection. The report is also based on the information provided to us of the age, materials, equipment, and construction techniques that were used subject to the qualifications expressed in this report. Property Diagnostics, Inc. relies on the owners to submit information pertaining to the replacement activities and attentions of site components.
Based on the findings in each of the specific areas reviewed, professional judgment was used in forecasting the remaining life expectancy of the systems and components scheduled in the body of this report. The estimated cost of each component has been identified. The same basis and judgment was used in describing any existing conditions based on estimated cost of all necessary or recommended repairs. This report, therefore, does not constitute or represent a warranty of the propertyʼs condition and should not be viewed as such. Rather, the report reflects our professional opinion based on the methodology specified above.
PROPERTY DIAGNOSTICS, INC.
William D. Grimes President
II. COMPONENT METHOD/UNDERSTANDING YOUR CHARTS
The following charts are typically broken down into the following categories, grounds, building envelope, building interior, mechanical/plumbing and electrical components where applicable.
The charts identifies and quantifies the component items, the estimated cost to repair or replace those items, and the target date with which those repairs or replacements are projected to take place. The annual contribution is the total cost for repair or replacement, divided by the repair cycle or target date. This cost has been presented in today’s dollars and has not been extrapolated to a future date. Note: Monies escrowed for future repairs or replacement earnsinterest,whichoffsetsadditionalcostscausedbyinflation.
The chart delineates Reserve/Replacement items. Some items must be totally replaced in a given year. However, many of the items, in practice, will be repaired or replaced in phases. An example would be a reserve figure to replace concrete walls shown as a total amount to be spent in ten years; in reality sectional replacement is likely.
The identified remaining life for each component are merely target dates, and are solely based on our experience and expertise. Observing the conditions of the component or supported information.
Chart Headings:
Column 1, entitled “ITEM”, is a list of commonly owned site components. Each chart is followed with a narrative describing the intended work for the component listed in this column. The purpose of the narrative is for the owners to have a better understanding of the intended work, which supports the estimated repair or replacement cost.
Column 2, entitled “QUANTITY” , refers to the number of all reflected units of measurement for the material or system furnished or installed Following the QUANTITY, applicable units of measurement are abbreviated, as follows:
Ea = Each or portion of total system.
SQ = Square of roof or 100 S.F.
SF = Square Foot
LF = Linear Foot
SY = Square Yard
LS = Lump Sum-Total costs of those items required to make the description (task) operational when finite quantities are not defined.
Lot = Entire system where quantities are not defined or are inter-dependent.
Unit = Each or portion of total system.
Sys = Mechanical system complete, including attendant mechanical work to make system function.
LOB =Life of Building
Column 3, entitled “NORMAL USEFUL LIFE”, this figure represents a conceptual number of years, which a given item or system can be expected to last at the time of installation. This figure is derived by using professional judgment and through observations made in the field.
Column 4, entitled “ESTIMATED REMAINING LIFE”, this figure represents the estimated time that an existing item or system can be expected to remain useful. This figure is derived by using professional judgment where items or systems show unusual wear or unusual preservation, or if the items are new by subtracting actual age of the existing item or system from the “Normal Useful Life”
Column 5, entitled “CURRENT REPLACEMENT COST”, reflects the estimated cost to replace and install an item or system or to perform the described work task. This figure is calculated using industry-accepted standards, comparing
various industry sources, and using professional judgment. Property Diagnostics, Inc. refers to Means price guides, Dodge price guides, and our inhouse database. These figures are for conceptual purposes only and are not based upon detailed engineering or architectural analysis, bid documents, or detailed physical surveys.
Column 6, entitled “CURRENT FUND”, reflects monies presently assigned to replacement of the indicated system or item in the Replacement Reserve Fund. This figure is derived by those parties responsible for allocating funds or by Property Diagnostics, Inc. as directed by those responsible parties.
Column 7, entitled “Required Fund”, represents those funds required to reach the Current Replacement Cost. The figure is calculated using the “Current Replacement Cost” less the “Current Fund” .
Column 8, entitled “ANNUAL CONTRIBUTION”, reflects the component method of funds that should be set aside on an annual basis in order to have the item or system fully funded at completion of the expected useful life period. This figure is calculated by dividing the “Required Fund” by the “Estimated Remaining Life”.
A. ARCHITECTURAL GROUNDS
Chart Item
15. Asphalt Drive
6. Concrete Walks – 10% Cost
Repair/Replacement Description
The estimated replacement cost in the asphalt section represents the cost to remove all loose materials from existing surfaces, and repair alligatoring and potholes. Deteriorated areas should be removed with a minimum of a 4” base to reach firm support. The removed areas should extend at least 1’ into good pavement outside the damaged areas. It is anticipated that approximately 10% of the loose asphalt material will require this type of removal; holes will require being backfilled with dense graded hot asphalt plant mix; and a topcoat will be required to be applied to vertical surfaces. Large cracks will be cleaned and filled with fine sand and asphalt mix. After all surfaces are prepared, a new application of 2” asphalt toping should be applied.
The estimated replacement cost for concrete walks includes removal of the existing concrete and replacement of new concrete. New concrete will be reinforced with a rebar material and rated for 3,000 psi. The concrete line-item replacement fund should be considered a draw fund. Concrete never requires full replacement at one time. However, it does require sectional replacement. Over the life span of the concrete, it is anticipated that all concrete will be renewed at least once.
7 Concrete Curbs – 10% Cost
The estimated replacement cost for concrete curbs includes removal of the existing concrete and replacement of new concrete. The concrete line-item replacement fund should be considered a draw fund. Concrete never requires full replacement at one time. However, it does require sectional replacement. Over the life span of the concrete, it is anticipated that all concrete will be renewed at least once.
A. ARCHITECTURAL GROUNDS
Chart Item
8 Brick Screen Walls
9. Brick Columns
10. Tot Lot
11. Site Furnishings
12. Light Poles – Fixtures
Repair/Replacement Description
Brick screen walls should never require full replacement if properly maintained. The estimated replacement cost is for repair and reconstruction of the wall during the remaining life. Repairs would include partial reconstruction and repointing of the wall.
The current replacement cost reflects the estimated repair scope at the end of the normal useful life. The columns will require joint mortar restoration by applying new mortar materials in deteriorated joints. This cost figure is based on the anticipation of normal deterioration and proper maintenance. Future point up requirements will vary given the age of the mortar at the time of the first point up.
The estimated replacement cost is for the replacement of the existing equipment with new equipment of equal quantity and quality. Tot lots are a very subjective part of the replacement reserve as the property may elect to reduce the quantity of the equipment, or increase the quantity and quality of the equipment. If the property elects to do this, the reserve figures should be adjusted accordingly.
The estimated cost is for replacing the existing site furnishings with new exterior site furnishings of similar style and quality.
The estimated replacement cost for lighting is based on replacement of the existing lighting fixtures with similar fixtures.
13. Bollard Landscape Lights
14. Underground Wiring
The estimated replacement cost for landscape lighting is based on replacement of the existing lighting fixtures with similar fixtures.
The price given is for the replacement of underground electrical utility wiring. It has been assumed that existing wiring will be disconnected, abandoned in place, and new wiring trenched in plastic piping.
III. CASH FLOW METHOD/UNDERSTANDING YOUR CHARTS
The Cash Flow Method incorporates the repair and replacement needs of the property over the next thirty years, to include anticipated repair/replacement of components and materials that are performed sectionally. A percentage of components replaced sectionally are ascribed in the thirty-year chart. The Cash Flow Method allows the Association to reserve funds to maintain the property based on the estimated requirements over the next thirty years.
The Cash Flow Section of the report extrapolates requirements stated in the Component Method section of the report.
The UNINFLATED CASH FLOW BREAKDOWN table has the following column entries.
- The first column reflects the calendar Year (2022 thru 2051) for each of the 30 years during the life of this report.
- The second column, entitled Total Replacement Costs / 30yrs, shows total projected expenditures for each Year.
- The third column, entitled Yearly Contribution, depicts the figure given to Property Diagnostics, Inc. used to complete this table.
- The fourth column, entitled Current Fund based on HOA’s Contribution, shows cash on hand or the HOA’s current, or projected Reserves based on $0 annual contributions minus projected replacement costs, by year.
- The fifth column, entitled Recommended Yearly Contribution, shows Property Diagnostic, Inc. annual contribution recommendation.
- The sixth column, entitled Current Fund based on the Recommended Contribution, depicts how the HOA’s Reserve Fund will increase over time if projections remain true and inflation does not cause replacement costs to increase over time.
Below on the uninflated cash flow chart we have provided two funding options for the Board to consider.
We recommend the Association’s Board of Directors update the reserve study every three to five years. This update would readjust the reserve requirements for the property based on actual experiences and conditions.
GRAHAM PARK HOMEOWNERS ASSOCIATION
CASH FLOW BREAKDOWN
IV. SUMMARY OF YEARLY EXPENDITURES
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
of Replacement 2022
Total for 2022 $0
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
of Replacement 2023 Total for 2023
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
2024 Total for 2024
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
2025
for 2025
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
2026
for 2026
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
of Replacement 2027 Total for 2027 $0
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
of Replacement 2028 Total for 2028 $0
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
of Replacement 2029
for 2029
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
for 2030
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
Replacement 2031
for 2031
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
of Replacement 2032 Total for 2032 $0
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
of Replacement 2033 Total for 2033 $0
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
of Replacement 2034 Total for 2034 $0
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
of Replacement 2035
for 2035
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
2036
for 2036
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
Replacement 2037
for 2037
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
of Replacement 2038
for 2038 $0
SUMMARY OF YEARLY EXPENDITURES
SUMMARY OF YEARLY EXPENDITURES Year
SUMMARY OF YEARLY EXPENDITURES
SUMMARY OF YEARLY EXPENDITURES
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced Cost of Replacement 2043 Total for 2043 $0
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
of Replacement 2044 Total for 2044 $0
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
of Replacement 2045 Total for 2045
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
Replacement 2046 Wood Screen Fences
for 2046
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced
of Replacement 2047 Total for 2047
SUMMARY OF YEARLY EXPENDITURES
Year Item to be Replaced Cost of Replacement 2048 Total for 2048 $0
SUMMARY OF YEARLY EXPENDITURES
Year
SUMMARY OF YEARLY EXPENDITURES
SUMMARY OF YEARLY EXPENDITURES
V. UNDERSTANDING YOUR RESERVE REPORT
A. WHAT IS A RESERVE REPORT?
A Reserve Report identifies all common and limited common property owned by a community that will require replacement or refurbishment over the life of the property. Reserve Reports quantify these components, determine their typical life spans and remaining life spans, and estimate costs of repair or replacement.
Properties use Reserve Reports as a long-term budgeting tool to identify the current status of their Reserve Fund and develop a stable and equitable funding plan to offset ongoing deterioration.
B. WHY DOES A PROPERTY NEED A RESERVE REPORT?
Ø Municipalities are beginning to require properties have a Reserve Studies updated regularly. Virginia is one state that requires an updated reserve every five years, and requires reserve reports be given to prospective purchasers.
Ø Reserve Studies provide necessary information used to maintain communities and protect owner’s investment.
Ø Refinancing firms are requiring Reserve Reports be updated on a regular basis, and in some cases will not finance a mortgage if the report is not current or the property is not properly funded. These include Fannie Mae, Freddie Mac, and FHA loans.
Ø
Ø Community board members have a fiduciary responsibility to maintain owner’s investments. Present and past board members have been sued personally for not having proper management performed when it comes to accurately assessing future repairs.
Ø Proper planning through Reserve Studies can prevent special assessments.
Ø Buyers are becoming more aware of how community properties are funded and are requesting a review of financial reports before purchasing.
C. HOW DO WE KNOW?
HowLongAComponentWillLast?
Property Diagnostics uses any historical information that has been provided by the community, industry documents such as AIA literature, ASHRAE literature, and manufactures literature, which list expected life of materials and components. Our staff regularly assesses community components and can recognize certain site conditions that allow us to accurately estimate the life expectancy of site components through visual inspection. Property Diagnostics has a dedicated obligation to be accurate.
HowMuchARepairorReplacementCost?
Property Diagnostics has developed thousands of Reserves over the years which has allowed us to develop a database of projected costs. Invoices and bids from vendors are continually provided to Property Diagnostics by communities that have recently had worked performed on their property. Cost guild literature, such as RS Means and The National Insurance Cost Guide, provide accurate replacement costs of components and are updated regularly.
ProposalsNotMatchingOurReserveEstimate?
Contact your Reserve service provider. They may be extremely helpful in addressing issues. We had a client that we estimated the roof to have a remaining life of five years an estimated the cost to replace at $38,000.00. They received three proposals with the lowest quoting $78,000.00. They contacted our firm to ask how we could be so far off. Looking at the proposals we discovered the proposals included a lot of things the property did not need. Luckily, they contacted us, and we solicited bids for the base roof replacement, which was replaced for $36,580.00.
D. COMPONENT METHOD VS. CASH FLOW METHOD
The Component Method develops a reserve-funding plan where the total contribution is based on the sum of contributions for individual components. This method is a very conservative approach to funding as it fully funds each component yearly. However, the Component method has limitations in that the remaining life and annual contribution of each component need to be manually updated. The Cash Flow Method automatically adjusts for these changes. The Cash Flow Method is a method of developing a reserve funding plan where contributions to the reserve fund are designed to offset the variable annual expenditures from the reserve fund. Different reserve funding plans are tested against the anticipated schedule of reserve expenses until the desired funding goal is achieved.
E. FUNDING GOALS: BASELINE·THRESHOLD·FULL
Baseline Funding: Establishing a reserve funding goal of allowing the reserve cash balance to be at or near zero during the cash flow projection. This is the riskiest funding goal because if an expense arrives early or unexpected there is a significant chance of needing a Special Assessment.
ThresholdFunding: Establishing a reserve funding goal of keeping the reserve balance above a specified dollar or percent funded amount. Threshold funding is often a value chosen in between full funding and baseline funding. The risk with threshold funding varies depending on each properties current Reserve status.
FullFunding:Setting a reserve funding goal to attain and maintain reserves at or near 100 percent funded. This is the most conservative funding goal
F. HOW OFTEN SHOULD A RESERVE REPORT BE UPDATED?
The Association of Professional Reserve Analysts believe a Reserve should be updated every year. Most properties should have their Reserve updated by a professional every three to five years. There are three different levels of Reserve Studies:
We perform a complete site assessment, obtaining or verifying measurements and counts of common area components. This also includes a component condition assessment and photo inventory of most components. We then compile the information obtained into our easy-to-understand reports.
Level 2 - UpdateofReserveStudywithSiteInspection
Once a full reserve study has been completed by Property Diagnostics, Inc., we will often perform updates with a site inspection. The level 2 site inspection is less comprehensive than a level 1 site inspection in that we do not obtain or verify measurements and counts unless it appears that there have been changes. We do evaluate condition and update the photo inventory where necessary. We then compile the information obtained into our easy-to-understand report.
An annual update to the reserve study is simply good planning. This allows you to "refresh" the funding plan and account for minor variations from the original funding plan. We inquire about expenditures made, changes in pricing of replacement costs, and variations in funding from the original plan, but do not perform a site inspection. This is a valuable planning tool at a very reasonable cost, generally no more than 25% of the cost of a full study.
G. SITE COMPONENT CATEGORIES
With every Reserve, site components will fall into a variation of the following three categories:
Subjective Fixed Variable
SubjectiveComponents are items that are replaced depending on owners’ preferences or tolerations. Examples of Subjective Components include:
