Your Reserves at Work

The LF II Homeowners Association was in recognition that much of our area has a natural beauty earmarked by its distinctive terrain and wooded areas. The Association was created for the purpose of protecting the investment of the Members of the Association by means of the preservation, enhancement, and maintenance of the community; to promote the health, safety & welfare of its residents. In furtherance of this purpose, the Association was embedded with a number of powers, which includes the ability to fix, levy and collect assessments (community funds) from its Members.

Through the continued & sustained efforts of its Board of Directors, Budget and Finance Committee, and staff. Unlike many other HOAs, LF II, LF II's governing documents obligate the association to maintain, operate, repair, and restore the assets of our Clubhouse & Common Areas. This is the purpose of the reserve funds. Through their monthly assessment, every LF II homeowner pays into the community funds, a portion of which contributes to the community-wide master reserve funds and the local neighborhood reserve funds (the neighborhoods of Park Place & Renissance have no local community assets & pay only into the master fund through their monthly assessment).

The reserve fund financial plan, which is prepared by a professional consultant with expertise in this area, is reviewed as required by Association regulations, whose purpose is to itemize and valuate all assets in potential need of repair and/or replacement (RR) during the coming year, and is used as a tool by the Board of Directors to anticipate expenditures to ensure adequate funding. This "Potential Reserves Expenditures List" is published each year in The MAINSTREET (the 2019 list is available for viewing in the Dec. 18 issue @ www.lf2.org). This list itemizes assets with a life expectancy that may expire during the coming year (though not all the listed items necessarily need repair or replacement that year, depending on individual condition), and provides the anticipated cost of the repair and/or replacement. These potential expenditures are to be funded from the accumulated Reserve Funds. Monies for the Reserve Funds are collected through the ongoing collection of homeowner assessments and set aside for use as needed for the ongoing maintenance or replacement of the Association's assets.