SOLERA ASSOCIATION FINANCIAL ACCOUNTS
Funding community operationsis one of the most important, if not the most important function of an HOA board. Properly overseeing day-to-day actions and long-term projects ensures the homeowners association will have a continuous supply of funds to keep the community running effectively.
COMMUNITY OPERATING ACCOUNT
This account is where all Association quarterly assessments are placed.
Normal operating bills, such as supplies, utilities, and routine maintenance expenses, just to name a few, are paid from this account.
COMMUNITY CAPITAL IMPROVEMENT ACCOUNT
The sole purpose of this account is for the enhancement and improvement of the Association's grounds and facilities. The funds in this account come from the sale of property in Solera. It’s 1/3 of 1 percent of the property sale price.
COMMUNITY RESERVE ACCOUNT
The purpose of this account is to pay for the replacement of gym equipment, HVAC equipment, furniture, and parking lot resurfacing, just to name a few. All payments coming from this account covers assets whose life expectancy is from 1 to 20 years.
Once the money is placed into this account it can only be spent on the items listed in the study.
COMMUNITY CONSTRUCTION DEFECT ACCOUNT
The money in the Construction Defect account is the result of winning a lawsuit against the developer. This Account was established primarily to keep the defect money in one account we could draw on the funds to make the repairs as needed. The fund can be moved into other accounts since it has been several years since the settlement.
The reserve study is more than recommendations, it is a requirement under NRS 116.31152 for associations to conduct reserve studies at least once every five years. Now, the study itself is based upon observation, maintenance history, life cycles and costs of the components of the association. Reserve studies estimate the future costs and calculate how much money over a period of time that must be acquired to pay for these future costs.