House Corporation - Best Practices

There are many types and variations of housing assets within Phi Gamma Delta - from traditional chapter houses owned by house corporations (HCs), to houses owned by universities or private parties. In other instances, chapters have lodges or private residences that used by members. We recognize that these different types of housing assets will require different levels of oversight and involvement by HCs and that some of the items listed below will not be applicable.

The 1848 Housing Committee will be developing resources and support materials as appropriate to assist house corporations in accomplishing the items listed below.

With the goal of providing excellent housing, HCs are encouraged to meet or exceed the following best practices.

 Corporate/Fiduciary

  1. Report annually to the graduate brothers of the chapter on the financial and physical condition of their assets
  2. Conduct an an annual meeting (preferably in conjunction with the chapter's Pig Dinner, to maximize attendance and participation of the chapter's graduates)
  3. Meet at least annually with the chapter to explain HC operations
  4. File state and federal filings on time including form 990s and 941 (if you have employees)
 

 General Operations

 Conduct Either Biannual or Quarterly Inspection of the Asset

Diligent care of the house and grounds by the chapter and the house corporation (HC) can reduce tremendously the long term cost of operations. This can also ensure that fire life safety equipment and systems are in place and working properly. 

Tools:

 Invite Undergraduates to Attend HC Meetings & Inspections

(President, Treasurer and House Manager)

Good two-way communication between the HC and undergraduates, especially officers, will help each understand the needs of the other. The HC may be able to better prioritize capital expenses and operational requirements if they know what the actives are dealing with. Undergrads can also better understand the needs of the HC and can take steps to educate the chapter accordingly. Having the House Manager accompany inspections is extremely useful as he will largely be charged with the implementation of required changes.

 Conduct HC Meetings at the Asset's Location

(Provides Visability to the HC and an Inspection Opportunity)

At least once a year the HC meeting should be held at the house. The purpose of the group, after all, is to oversee that asset and the connection with the chapter house is imperative to effectively oversee it. The meeting may start with a “walk-around” so that everyone can see first-hand the conditions and where improvements need to be made. Issues may become very apparent that would not even be considered at an off-site location. Such a meeting could be scheduled to coincide (beforehand) with another fraternity function such as Homecoming or Pig Dinner. This scheduling may lead to enhanced attendance and would be a good way to invite potential new HC recruits to attend the meeting as they may already be planning to attend the corresponding function. 

As a house corporation board, you are the fiduciaries, acting on behalf of all graduate members of the chapter. A great way to think about your role on the HC is the board of directors for the corporation and the graduate members of the chapter are your shareholders. As the HC relies of the graduate members for fundraising support, it is critically important that we engage our shareholders and regularly report to them on the activities of the house corporation. 

Note: the purpose of the annual meeting is information sharing (and possibly information gathering). While it is up to your board, we do not recommend that the agenda at annual meeting be similar to your working meetings. We suggest that this be a “reporting” meeting.

Tools:

Sample Meeting Agenda:

  • Call meeting to order - President
  • Introduce house corporation members - President
  • Financial report - treasurer
  • Report on house occupancy
  • Report on house corporation operations (activities performed by the HC over the past 12 months)
  • Report on planned maintenance/renovations/improvements
  • Report on next graduate event
  • Discussion on “finding” lost brothers (circulate a list)
  • Q&A session - allow your “shareholders” to ask questions
  • Adjourn

 Organize & Implement an Annual House Improvement Weekend

The timing of an improvement weekend will depend on the school’s specific calendar and scheduling, but it should not interfere with academics and is probably best arranged at the beginning of the school year. Here are some ideas adapted from the fraternity advisor: 

  • Re-paint walls to clean and/or update the house.
  • Clear landscaping to remove old brush or add new.
  • Have a cleaning marathon, with a set amount of hours where every surface, floor, piece of furniture, etc. gets cleaned.
  • House projects are often not about cleaning or updating the house. They are about building relationships and strengthening the bond between brothers.
  • This might be an opportunity for something of greater significance. This means it may be more than improving the physical structure. An example is a fraternity that updated their front walkway and patio area with memorial bricks and did an excellent job of building a sentimental feature of their house in remembrance of a lost brother. This can improve the buy-in and helps to get other generations of brothers involved.
  • Include new members in every step. They may be incredibly handy or just another set of hands. Either way, just like making sure your project has significance, including new members in a collaborative environment is a great way to create those lifelong connections we value in the fraternity world.
  • Show off what you did. Use social media, your campus newspaper, or any other positive PR outlet to put on display what you accomplished. By putting the fruits of your labor out there, you can demonstrate to the campus community that their negative perceptions of fraternity men are inaccurate.
  • Involve graduate brothers as often as you can. Creating connections across generations is always a good thing. This can assist younger brothers in making connections with them. You never know what alumni may help get with an interview, write a recommendation, etc. Valuing your history and the people who made it only helps your cause.
  • Remove old carpeting. Decorate with paddles. Get a sorority to help and return the favor the next day.
  • An important message here is for the undergrads to understand that they are not just tenants. Knowing that being a brother is synonymous with being a steward of the property. If they have some skin in the game, they most likely will respect and take care of the house better.
  • Instead of just repainting walls, making a mural or painting a cool, clean design incorporating your letters, crest, motto, etc.
  • Include brothers in the demolition of old, stained, gross, never should be used again, falling apart furniture (think chainsaws and giant dumpsters) but only if they assist in clean-up projects as well.
  • Build your own shelving, lockers, cubbies, etc.
  • Continually clean/polish old trophies, plaques, composites, etc.
  • Make sure the kitchen and bathrooms are spotless before inviting women over.
  • Focus on the exterior of your chapter’s property. The renewed exterior not only promotes PR for a fraternity house, but also serves as a great recruitment tool by being visible to students passing the house on the day brothers are working outside.
  • Paint the front door – you won’t believe how much of a difference that will make in a house.
  • Update furniture.
  • Compliment flooring with area rugs.
  • Install direct lighting with motion sensors.
  • Update window coverings for aesthetics and energy savings.
  • Headquarters may have funds that you can request as a grant for house improvement projects if they meet certain requirements - such as for educational purposes (a computer/study room).
  • Install energy efficient lighting in the house. This can have a dramatic impact on your utility bills.
  • Clear out a portion of the property to create more parking.
  • Have a project to secure items in the house. Secured all composites and plaques to the wall to ensure they can't be easily stolen.
  • Upgrade the WIFI connection at the house.

One of the best ways to improve the general feel of the house is to simply be mindful of the decor and keep it clean. Decorate your house with pride. A house that is filled with fraternity items on the walls is impressive, but only when those things look nice. Stray away from hanging posters that are in poor taste on your walls. It looks trashy. Old fraternity items are really nice and should always be displayed with pride. 

Your house is an extension and reflection of the Fraternity-at-large. If your house is dirty and neglected, then those outside (and even inside) the Fraternity will think exactly that about the Fraternity as a whole. Take pride in the place that you live and people will notice.

 Hire a Graduate Advisor or House Director to Live On-Site

(For Chapters That Have at Least 50 Men Living in the House)

Here is a modified example of a posting for a House Director.  This gives a good overview of what such a person can bring to the chapter house experience and it outlines the qualifications that should be expected.  This may be quite beneficial, especially in larger houses, which are also the ones that are most likely to be able to afford to hire for the position.

Summary:

The house director (HD) plays a vital role in the living, learning and leading environment of the collegiate member of Phi Gamma Delta. He/she works with the House Corporation to provide a safe, secure and comfortable environment for both resident and non-resident members of the chapter. Job responsibilities are site specific and may range from directly managing the chapter facility, assisting chapter officers with chapter operations as needed, providing emergency support, serving as host of the chapter facility, performing administrative work directly related to the general business operations of the chapter facility, and offering moral and logistical support for chapter priorities, programs and initiatives.

Qualifications:

  • 5+ years of related experience
  • Bachelor's degree from an accredited college or university preferred
  • Possesses project management, housing staff relations, customer service and safety standards skills
  • Ability to operate a computer, including web browsing, email and Microsoft Office products
  • Meets specified physical requirements of lifting no more than 35 lbs, standing, walking and climbing stairs daily
  • Ability to speak and read English
  • Ability to use proper discretion and independent judgment in carrying out the primary responsibilities below

Primary Roles:

  • Promote a healthy and safe living environment by promoting and supporting all policies and procedures, as set forth by Phi Gamma Delta, chapter housing policies, university and federal, state and local regulations.
  • Reside in the chapter facility full-time and as needed during breaks.
  • Manage the daily operations of the chapter facility by maintaining a safe, clean and pleasant living environment for resident and non-resident members.
  • Supervise chapter contractors and promote positive vendor relations, including food operations, housekeeping service, general maintenance and any other regular service.
  • Supervise facility employees, contractor and vendors.
  • Provide emergency support for chapter members, guests and property.
  • Collaborate with chapter officers - specifically the House Manager (HM), as well as the chapter’s advisory team to support the overall goals of the house corporation and the specific collegiate chapter. 
  • Work with the house corporation to manage housing-related budget items, including contractor bids, household supplies, food service, cleaning and general maintenance and repair costs.
  • Coordinate opening and closing events.

Primary Responsibilities:

  • Follow all Phi Gamma Delta Fraternity and chapter policies, procedures and guidelines.
  • Successfully manage the daily operations of the facility by performing administrative work directly related to the general business operations of the facility and establishing and maintaining a rapport with the chapter.
  • Report violations of chapter facility rules to the house corporation, house manager and/or advisor.
  • The house director is not expected to nor permitted to discipline chapter members.
  • Open and close the chapter facility in collaboration with the HM before and after each vacation period at the hours and dates specified by the house corporation and resident contracts.
  • Establish an orderly environment through proper supervision of the staff, structure and grounds.
  • Ensure that the chapter facility is clean, orderly and free from unnecessary hazards and dangers.
  • Offer logistical support for chapter priorities, programs and initiatives.
  • Establish and maintain vendor relationships for the procurement of all goods and services necessary for the efficient operation of the facility.
  • Work with the house corporation to respond in a timely manner to all maintenance requests submitted by chapter members.
  • Report to the house corporation any action necessary to properly maintain the chapter facility, its furnishings and equipment and grounds; advise when items or supplies need to be replaced and/or repaired and recommend capital improvements as needed throughout the year and when requested by the house corporation.
  • Oversee the cleaning of the facility and all furnishings as needed during vacation periods and prior to the opening of the house. This includes the proper storage of facility supplies and equipment.
  • Reconcile and report all expenditures as outlined by the chapter and/or house corporation.
  • Follow expense approval and expense reporting processes and procedures.
  • Recruit, hire, train, schedule and supervise chapter facility employees including kitchen staff and housekeeping staff. Report wages and hours as well.
  • Submit hours and payroll through an online payroll system for all facility employees.
  • Oversee the operation of dining services, including menu preparation, purchasing and special events.
  • In collaboration with the chapter and house corporation, establish kitchen and dining operations policies and procedures, and clearly communicate to all facility employees.

 Implement a "No Pets Allowed" Policy in Asset's Facilities

(If it Is the Desire of the House Corporation - However, Many Exceptions Apply)

Many leases contain a provision such as the following and you may want to include something similar for members living in the house: 
For health and safety reasons, no pets of any kind shall be kept in or about the premises without the prior written consent of the House Corporation. 

However, you should know that service and support animals are exempt from such provisions, and it is increasingly difficult to enforce a “no pets” policy. (Service animals can include miniature horses!) State laws vary and you should consult an attorney before drafting such a clause as you may also be required to alert the renter to the exceptions. For more information, review the ADA's Requirements for Service Animals.

The Different Types of Assistance Animals

Because there are so many different types of assistance animals, the best way to start off is to define them: 

Service Animals:

First, let's start with the animal that has the most amount of rights. A service animal can be either a dog or, more recently, a miniature horse. This is how the Americans with Disabilities Act (ADA) defines a service animal: "Service animals are defined as dogs [or miniature horses] that are individually trained to do work or perform tasks for people with disabilities.” Both the ADA and Fair Housing Act protect service animals. 

Emotional Support Animals:

Second, the animal that that has provided the most amount of controversy and…variety. There are many news stories regarding these comfort creatures. You will find stories like a sorority not accepting a rabbit, guinea pigs in dorms and a duck on a plane. A legal definition does not exist to govern an Emotional Support Animal (ESA), so there are no rules regarding the animal’s breed, type, demeanor, training or size. This is why you have people with peacocks, snakes and turkeys as ESA's. ESA's are covered under the Fair Housing Act.

It is important to note that when it comes to rental housing, an emotional support animal has the same rights as a service animal. 

Therapy Animals:

Next are therapy animals. These animals are trained to provide support to people other than their handler. While they are usually well behaved, highly trained and socialized animals, they are not protected under the ADA or Fair Housing laws. 

Pets:

Finally, the animals that most people can relate to…pets! Although you may consider your pet to be a member of the family, they do not have the same rights as a human. To define a pet: any animal that isn’t a service or emotional support animal. Pets are not covered under either the ADA or Fair Housing Laws (with the exception in the next paragraph).

A landlord can choose to allow or not allow a pet. They can choose certain types, sizes, or breeds of pets to allow or reject. However, you must treat every applicant the same during the entire leasing period. So if a landlord allows dogs and cats during one leasing period, they can choose to change their pet policy the next time the rental becomes available, but not during the same rental period. 

Americans with Disabilities Act (ADA)

The ADA is specifically for government services, and public and commercial facilities. This act says that these entities must (generally) permit service animals to accompany people with disabilities in all areas where the public is allowed to go. It gives some other regulations about service animals, but this is not the act that applies specifically to rental units. The ADA does NOT cover comfort or emotional support animals (ESA).

Fair Housing Act

The Fair Housing Act is the act to pay attention to in relation to rental housing. The whole act is extremely important to understand when you are a landlord, but only a part of it applies to assistance animals. The purpose of the Fair Housing Act is to protect people from discrimination based on race, color, religion, national origin, gender, familial status and disability. In this post, we will talk specifically about how it governs the protection of disabled people and assistance animals.

Fair Housing & Animals

The Fair Housing Act requires landlords to allow reasonable accommodation for a person with a disability. In the case of an assistance animal, the animal is not considered a “pet”. A landlord MUST allow a service or emotional support animal in a rental unit and cannot charge a pet deposit or pet rent for the pet. Under this act, service animals AND emotional support animals have the same rights. One thing to note is the tenant still has certain responsibilities in regards to the animal. 

In order for an applicant to have a reasonable accommodation, they must do the following:

  • Provide a note from doctor stating that the person has a disability and the animal is needed to help with this disability.
  • Still follow the pet policy. 
    • The animal must still be vaccinated, spayed or neutered and adhere to other cleanliness rules.
  • Pay for pet damages at the end of the lease period.

Under this Act, a person with an assistance animal may not be charged:

  • Pet application fees
  • Pet deposits
  • Pet rent
Reasonable Accommodation Under the Fair Housing Act

The government sees allowing service and emotional support animals and not charging pet fees as reasonable accommodation for a disabled person. The following may also be considered as reasonable accommodations under the Act:

  • Allowing an animal in a “No Pet” unit.
  • Allowing a breed of dog that would normally be rejected (many guide dogs are German Sheperds). 
  • Installing a poop bag dispenser.

Not all requests are reasonable. Allowing an emotional support horse is NOT a reasonable accommodation in an apartment unit, but may be on a house with land and a barn. If you have any questions about whether a request is reasonable or not, make sure you reach out to your attorney quickly and early. You may not intentionally be discriminating, but a person covered under the fair housing act could see it as so.

To Wrap it Up

These are important things to know when you are a house corporation dealing with assistance animals at your chapter house property.  As a landlord, you cannot be ignorant. Know the law and make sure you have your screening process down! Don’t be accused of discrimination or be taken advantage of by someone.

 

 Finances/Budget

1. Annually review P&C insurance to ensure it is commensurate with HC's asset
2. Create a reserve study and review annually (Reserve Study Tool)
3. Maintain cash reserves equal to at least six (6) months of operating expenses
4. Operate in full compliance with HR/payroll practices in their jurisdiction
5. Insure PGD room & board rates are at or above average rate charged on campus
6. Review/compare condition of assets to other fraternities on campus (our goal is to be in the top 30% of assets)
 7. Implement a scheduled maintenance plan to reduce peaks and valleys in facility condition and extend the life of the facility assets

Routine maintenance on the various components of your chapter house will both extend the useful life of each component and reduce the possibility of an unexpected service interruption (as in having the furnace go out in the dead of a winter night for example), and emergency service calls come at a high cost and are often only a temporary fix to a greater problem.

Begin by making a list of all the various components that make up the physical plant (chapter house). These will include both structural components such as the roof and finish items such as painting. Components should also include personal property items such as furniture.

A comprehensive list of components would include:

  • Roof - which may be under a full or partial warranty provided by the last installer
  • Exterior walls – which need periodic re-grouting if brick or replacement if wood due to dry rot, joint separation or just age
  • Plumbing - which includes all fixtures and hardware but also includes unseen and maybe difficult to access pipes such as the sewer lateral to the street
  • HVAC - which includes all Heating, Ventilation and Air Conditioning units and their related components such as ducting, controls and filters
  • Windows
  • Doors
  • Electrical - which include both fixtures and service line components such as circuit breakers
  • Flooring
  • Life Safety components such as fire extinguishers, sprinklers and illuminated exit signs
  • Personal property which includes furnishings such as tables and chairs, window treatments and movable appliances such as ovens and refrigerators

After a list is made review each item to assess condition and determine whether the item has components needing regular servicing such as forced air heating filters, fire extinguisher refill or replacement, drain cleaning etc. For each item identified consult service manuals, service providers or the web to determine recommended servicing and replacement suggestions. It’s also quite possible that a Graduate Brother in the contracting business can be a good resource for you on this.

Once a scheduled maintenance plan has been established keep the plan in a safe place and schedule an annual review and update to the plan as a regular annual chapter or House Corporation event.

 8. Charge parlor fees to members not living in the house for their share of the cost to use and enjoy of the chapter house

The chapter house represents many things and has many uses. While not all brothers can or maybe even want to live in the house, if the house offers live-in space, there is no question that all active brothers benefit from the privilege of having a place to meet, socialize and develop the lifelong friendships that the Fraternity encourages. The house also becomes part of the chapter’s identity on and off campus for good reasons or for bad. For these reasons all brothers should be asked to (and hopefully willing to) help cover the operational expenses of the house.

A "parlor fee" is a traditional term in the Fraternity world for an assessment to non-live-in brothers to help cover the annual operating expenses of the property. While there is no specific formula for determining an appropriate fee, one practical approach is to budget total annual operating expenses for the coming year being sure to include appropriate replacement reserves and debt service on any property-related loans, subtract total room rental income from live-in brothers and then equally divide the difference among all live-out brothers. An exceptionally high allocation suggests an imbalance between the total occupancy cost of the chapter house and either or both the size of the chapter and the amount being charged to live-in brothers and will need to be addressed separately.

9. Have an alternate minimum flat annual rate rental amount that the chapter is obligated to pay, regardless of actual occupancy
 10. Have a written room contract with each individual tenant that is guaranteed by a parent/guardian

Option 1: House corporation should have a master lease with the chapter and have the local chapter have individual leases with members.

Option 2: House corporation should have individual leases with members that are guaranteed by parent or guardian.

(Note: Another of the best practices is to be charging non-live-in members a “parlor” fee for their use/wear & tear on the house. Some/all of these funds should be given to the house corporation to offset repairs and maintenance. Details on this topic are addressed in another section.)

Background/Information: 1848 Properties recognizes that there are situations where one best method of how do something might not be reasonable or practical. We feel in the case of leasing arrangements, having having two recommended approaches for house corporations is optimal. That said, we do feel that there is a “better” and “best” approach to handling the leasing function.

The "best" approach would be for the House Corporation to have a “master” lease with the chapter (see sample document). The reason we believe this is the better model is due to some recent court rulings (Fritzie for instance) which suggest that when the House Corporation is dealing just with the chapter this provides for a bit more “separation” from the conduct of the members and the programming of the chapter itself, resulting in more of protection to the house corporation should there be an incident at the property. (In more simple terms- we are the landlord renting to the chapter, we aren’t responsible for or knowing who the chapter has rented rooms to or what specific activities they are doing on the premises.) The key to this approach is being sure that the House Corporation stays in its lane and doesn’t get involved in Chapter Advising roles or doesn’t have men serving simultaneously in both a House Corporation and Chapter Advisor role.

The "better"  method of leasing would be for the house corporation to take responsibility for individual leases but to have these guaranteed by parents/guardians. The practice of guarantees is common in both the Greek system and by the University itself. Students living in University housing are almost always required to have a parent/guardian sign or guarantee the lease because it is understood that in the vast majority of instances the parent/guardian is fully/partially responsible for payment of the college experience and that studen’s generally don’t have assets. Further, it is understood, that the “threat” of recourse to a parent/guardian is often useful leverage in getting compliance by a student that is not cooperating.

Tools: Please note that real estate/leasing laws vary from state to state. Therefore, if you use one of the sample leases, it is important that you invest in a legal review from a local attorney to insure that are compliant with your state’s laws. (For instance, the amount of time you have to return a housing deposit varies from state to state.)

Further, in the sample lease with a chapter, adjustments will be needed to account for practices such as who is paying for the utilities or repairs.

See sample House Corporation/Chapter Lease
See sample House Corporation/individual member lease

11. Charge a room damage deposit and have a room inspection form that tenants use when moving in/out of the house
 12. Budget for higher than expected operating costs (recommended at least 5% over planned budget)

Consistent with prudent financial planning the chapter or house corporation should prepare an annual chapter house operating budget and have it adopted, ideally before the start of the next fiscal year. With regards to operating expense projections the best approach is to look at each item separately to determine an appropriate estimate for the coming year. Some items such as property taxes in some states have maximum annual increase limits which make budgeting easily. Most items are on a best guess basis however. A review and comparison of actual annual costs from previous years can yield an average growth rate estimate which can be useful but is not precise for many reasons. If historical expense costs are unknown or not relevant for whatever reason an estimate based on the most recent published annual CPI index can be used. This figure is published by the US Bureau of Labor statistics and is readily available on the internet. Once an appropriate cost amount has been determined for each item be sure to add an additional 5-10% of the amount determined to account for the likelihood of unexpected cost increases over the coming year.

13. Budget for bad debt (recommend at least 5% bad debt as part of their standard budget)
14. Require chapters to have a local rule for a live-in requirement, so if/when house occupancy rates fall below 90%, members would be required to live-in or move in
15. Require the chapters implement a local annual housing assessment (e.g. $50/man/semester) designated for care and upkeep of the chapter house
 

 Safety & Security

  1. Perform an independent safety inspection annually (insurance company, university, fire dept.)
  2. Perform fire drill/alarm system tests at the same frequency that is done with university housing on their campus (recommended 2x/yr. minimum)
  3. Equip and maintain property with appropriate system for security
  4. Require chapter officers/house manager/chapter advisor to perform a monthly inspection of the asset to assess operational and safety issues (1848 Properties has a recommended inspection list)
  5. Require chapters hire outside security for large social events
  6. Install sprinkler head guards on sprinkler heads to prevent accidental discharge of water
  7. Install and maintain smoke detectors and carbon monoxide detectors in accordance with local fire regulations
  8. Replace batteries for smoke detectors semi-annually
 

 Reserve Study

Explanation

A best practice within Phi Gamma Delta house corporations (HC) is the use of a Reserve Study to help the HC plan for repair and replacement of major components of the house and the funding for the same. This tool/process will help insure proper funding/capitalization of the HC and avoid the need for continual appeals to graduate brothers to handle routine upkeep and improvements. Further, the use of this tool will enable the HC to properly calculate the full cost of operating the house, so that this can be factored into their rent calculations. Rent, of course, shouldn't just be about mortgage, insurance and utilities, etc., but needs to factor the costs of all the components of the house. With this information, the HC can factor in and charge brothers for their share of the use of this asset and the components annually, rather than pushing that cost out to brothers in the future.

Starting this process can feel daunting. Don't let this deter you! Even if you start with "guesses" about the cost of replacement of items and estimate the useful remaining life, that is better than doing nothing! Over time - say as you have the furnace inspected - you can ask for an assessment of remaining life and get an estimate for replacement from your vendor. Finally, don't be discouraged if your obligations outweigh your on-hand cash. Under capitalization is a common problem among HCs. And not only do you need to allocate some of your cash on-hand to your reserves, but you also should have several months of operating expenses on-hand as well. This is all part of the process of improving HC operations. For those with cash on-hand, we recommend that you allocate some of those funds to your reserves based on the items that will need replacing the soonest. And remember, reserve funds as a general principle should not use for daily operations.

Finally, this reserve study format is allocating the cost of house operations based on the number of brothers living in the house (beds). Of course, the brothers living in the house are getting "more" benefit and use than brothers not living in the house, but all brothers have access to the house and are benefiting from the roof, HVAC, common areas, chapter room, bathrooms, floors, etc., and they are contributing to the wear and tear. For this reason, we recommend that HC factor in an amount to assess/charge the "non-resident" brothers for their share of the use and enjoyment of the house.

Process

Here is the Reserve Study Tool.

The Reserve Study tool is only as good as you make it. We recommend that at least once every three years the HC shall cause to be conducted a reasonably competent and diligent visual inspection of the accessible areas of the major components which the HC is obligated to repair, replace, restore, or maintain as part of a study of the reserve account requirements of the HC. It is recommended that the board shall review this study annually and shall consider and implement necessary adjustments to the board's analysis of the reserve account requirements as a result of that review.

 

Have a Question About Housing?
Contact Rob Caudill.