Subject: QL Reserves vs. Other Condos—We’re on the Right Track!
As we’ve gone over in some of our recent communications, Maryland recently passed a law that requires MD condo associations to have Reserve Studies done and that the result of that Reserve Study will produce a dollar amount that the condo association will have to keep on hand in Reserves.
As we also mentioned, a lot of condo associations are not prepared for this and the first news on this is starting to hit around the state:
If you don’t want to read the whole article, we’ll summarize. Lots of condo associations are indeed short of the required amount and are now going to have to do special assessments to cover the shortfall. Numbers in the article include a building where 80 units will have to come up with $58,000 each and a couple of other associations that have six-figure assessments.
So, what does this mean for Queen’s Landing?
Well, the good news is we were already funding our Reserves before the law, as a best business practice. We have another Reserve Study coming in 2024 and while this could generate a number that leaves us short of where we are required to be, our Reserve Study company assures us that if at all, it should be low enough to not have an immediate impact in the form of a special assessment.
This year our 2024 Budget was approved for an increase in Reserve funding of $25,000 and the 2024 Reserve Study will guide us towards what we need to do in 2025. Planning way ahead has been a big part of Queen’s Landing’s success lately.
If you have any questions, please contact Mike at [email protected].