be maintained and repaired. That is a significant expen- diture for any Association, and if sufficient reserves have not been set then the Board is looking at a loan or worse, a special assessment. All of those members showing up at the next Board meeting aren’t trick or treating, they are there to vent about the special assessment.


How to manage that risk? Be sure that the reserve


study is accurate, so that sufficient funds have been set               - tion must be “reasonably competent and diligent”, and the updated study must maintain every component (that the Association is obligated to maintain and repair) that  estimate of the cost of repair or replacement every such       published guidelines for this inspection and update that recommend using vendors such as contractors to recom- mend a scope of repair and estimate their cost. Most reserve study specialists are very competent, but coming up with an accurate scope and cost of repair for deterio- rating balconies, siding, roofs, etc., is outside their ex-   may add to the cost of the reserve study update, but that is the best way to ensure that the update is accurate, and that the Association is saving up an amount sufficient to accomplish necessary maintenance and repairs. The whole point the reserve study update is to ensure that the Association is saving up enough money so that when the projects do come around, there are sufficient funds. - date leads to long term headaches when the repairs come and they aren’t sufficiently funded; that leads to special assessments, which is what really makes the ghosts and goblins come out.


There are many other potential risks of course, but with good management, good policies, and good industry partners, risks can be managed so that the well protected Board member (and manager) can relax, enjoy their pumpkin latte and apple pie (and look forward to the end of budget season).


 - nut Creek office. He has been involved in residen- tial and commercial construction litigation for over 20 years, dating to his time working full time dur- ing law school for a firm representing homeowners in construction defect matters. His experience and


insight into the construction industry helps quickly identify building defects and the necessary investigation methods. Tis knowledge leads to concise investigations, which ultimately saves the experts’ time and this savings is then passed onto our clients. After several years of representing builders and their insurance companies, he now exclusively represents property owners in claims against builders. Hisextensive experience gives him unique insight into their strategies and approaches to defending and resolving construction defect claims.


 9


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