SmartProperty® helps New Mexico HOAs and condominiums plan and fund their reserves. State law lets associations budget for reserves but doesn’t require a study, while the resale certificate shows buyers your reserve balance. A study is how the board shows it acted prudently.
New Mexico leaves the decision to the board and the governing documents, then makes the reserve balance part of every sale.
If a roof or road fails and the board never planned for it, owners can claim negligence and breach of fiduciary duty. A professional study is the board’s evidence that it made an informed decision.
A low or missing reserve balance shows up on the resale certificate, where buyers and lenders see it. An association with thin reserves can land on a lender’s ineligible list.
A missed special assessment on the certificate can’t be collected from the buyer. Accurate figures start with knowing the reserve balance and what the board has budgeted.
A site-inspected study to start, then updates as costs and conditions change, so the board always has a current plan.
The Living Reserve Study® updates as projects are completed and costs change, so your plan is ready for the next update or budget.
Model higher contributions, special assessments, loans or lines of credit side by side before you take a recommendation to owners.
Atlas shows the cost data and useful-life assumptions behind every figure, so boards can answer owner questions with confidence.
See how the Living Reserve Study® works for your community, or tell us about your association and we’ll put together a proposal.
Photo via Wikimedia Commons: White Sands: John Fowler, CC BY 2.0. New Mexico law summary is not legal advice. Confirm your association’s obligations with New Mexico counsel.