Reserve Study 100% Funding Requirement on 12-31-2025 = $666,635.
Reserve Fund Balance reported by HOA on 3-31-2026 = $129,022
Percent Funded (129,022/666,635) = 19%
Deficit = $537,613 = $666,635 – $129,022
Deficit = 100% Funding Amount minus Actual Fund Balance
The extremely weak reserve fund balance could mean large assessments of thousands of dollars payable on short notice.
Click to view the Reserve Study
The underfunded reserve fund could reduce property values by as much as 12% or over $60,000 per home in lost value based on research by Robert Nordlund of Association Reserves.
Why is a Reserve Fund and a Reserve Study important?
1) To protect and maximize property value.
2) To avoid large, surprise special assessments that some owners may not be able to afford.
3) To spread out homeowner payments for major maintenance projects over a much longer period of time.
4) To have funds available when planned projects need to be done.
The master HOA represents 63 homes plus one vacant lot in Thraemoor in the Park HOA. The HOA reserve fund was analyzed by a reserve fund specialist in 2021. They issued a 48-page Reserve Study update.
According to the 2021 Reserve Study, the HOA Reserve Fund was only 19% funded at $73,818 as of January 1, 2022 and has continued at 19% into 2026.
HOA board members in Colorado are required by law to act prudently and in the best interests of the HOA.
The HOA CCRs at 5.3 require ‘an adequate reserve fund’. It is NOT optional. If the board tries to change the CCRs and removes the adequate reserve fund, vote no on that.
If a board Ignores the CCRs and the expert advice contained in a Professional Reserve Study and intentionally under-funds the reserve fund, are they acting prudently and in the best interests of the HOA?
If homeowners conclude the board is not getting the job done, they should find qualified replacement board members to elect.
Even following the proposed financial recovery plan on page 14 of the study will take until 2050 to achieve a 100% funded balance. But the HOA appears unwilling to adopt that level of financial discipline.
Unless the HOA changes course, they will face large, ‘surprise’ special assessments on owners to finance the necessary projects.
Remember – funding the reserve account does not increase costs. It simply ensures that expenses are spread out more evenly and improves property values.
If you want a professional, expert estimate of what to expect going forward, then require that the HOA obtain a full update of the reserve study with an onsite review of all elements.
Then, please provide this website a copy of the new study so we can post it online. Thank You.
If any HOA members would please provide us with a copy of the current financial reports, that would also be appreciated.
Another problem with under funding is that early home owners who lived here many years but have since sold their homes and moved out did not pay their fair share of replacement costs for many items included in the reserve study. As a result, when major reserve expenses come due, more recent purchasers bear the full brunt of large special assessments, dues increases and lost property value from deferred maintenance.
What can be done? When the next annual meeting or special meeting to elect board members comes around, DO NOT SEND IN YOUR PROXY FORM.
The proxy forms may be used by the board to re-elect themselves or their hand picked replacements. In order to give additional owners who may be qualified an opportunity on the board, you can keep those proxy forms to yourselves. Then show up at the annual meeting to cast your vote plus any proxy vote forms you collected from your neighbors. You will still be able to re-elect board members who may be qualified but that will also make it possible for other candidates to be heard if the board does not control the proxy forms. If you cannot attend the annual meeting, give your signed proxy to another owner who will attend.
NOTE: The six non-HOA homes also rely on the HOA to maintain the common areas and preserve property values. These six non-HOA owners are also impacted due to possible deferred maintenance and potentially reduced property value. These six homes also help pay to maintain the common areas. Therefore, this is also their business to be concerned.