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Applewood Pointe of
Roseville |
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Reserves for replacements |
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When considering a condominium or cooperative community, there are several key questions one should ask.
1 - "Have your residents paid Special Assessments? In a September 2006 article in the Minneapolis Star Tribune, John Ewoldt wrote: "What makes condo living different from single-family homes is that an owner can’t choose when to make repairs. Most buyers are more concerned about their personal budgets than the association’s, said Greg Pettersen at Reserve Data Analysis in Spring Lake Park, which conducts reserve studies. He said that $15,000 assessments aren’t that unusual anymore. What to consider: Buyers should ask if any special assessments already have been levied and for how much. This is common for older buildings, but even new construction may have problems that the association, not the builder, is responsible for. What to consider: Buyers may get some assurance if the association has done a reserve study that determines if adequate funds are being set aside for repairs and replacements. Without a reserve study, and most associations in Minnesota don’t have one, it becomes a “buyer beware” situation for the owner, said Pettersen. |
| Applewood Pointe Cooperative of Roseville has over $1,000,000 in reserve for replacement and over $250,000 in reserve for operations. Our resident/members should never face a special assessment. We use a forecasting model that lists: all replaceable assets, life expectancies, expected inflation and expected earnings on fund investments. The annual provision for reserves for replacements are driven by this forecasting model. |
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