What is a Capital Improvement Reserve?

The State of Minnesota requires that each common interest community (condominium association or homeowner association) shall include in its annual budget an amount to be used for replacement of community-held components or amenities. The amount annually budgeted for replacement reserves shall be adequate, together with past and future contributions, to replace the components based upon the estimated remaining useful life of each component.

What are community-held components or amenities?

Typically these “community held components” include things like signage, retaining walls, trash enclosures, tot lots, retaining walls, patios, or plantings. The association may make these improvements or replace these amenities to reduce future operating costs or to upgrade them.  

What is Capital Improvement Planning or Master Planning?

Capital Improvement Planning involves conducting an assessment of the association property and developing a plan to prioritize the replacement of those elements. Typically, this involves a summary description, cost estimates, and a phasing schedule or plan for reference by future HOA Board members. 

How to Create an HOA Capital Budget  

Klein-Norby Landscape & Site Design is a professional landscape architecture and planning firm based in Minnesota. Much of our work involves working with condominium associations and residential homeowner associations to provide long-term capital planning and the replacement of community-held landscape components such as signage, patios, retaining walls, lighting, and landscape plantings. Some of our more recent clients include Carriage Woods in Blaine, Long Acres Community in Chanhassen, and the largest homeowner’s association in Minnesota, Jonathan Association in Chaska. See our project work here- https://www.jonathaninchaska.com/about-us/FOCUS AREAS