Reserving for Slope Failures
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RESERVING FOR SLOPE FAILURES

Associations with slopes sometimes suffer small slope failures and wonder if it would be appropriate to set aside reserves for repairing slopes. Yes, reserving for future failures is appropriate.

Reserve Item. The reserve line item does not need to cover all slopes in the development since it's unlikely all slopes would fail at the same time. Instead, the board should set aside enough money for repairing the number of slopes that may suffer failures. If and when a slope fails and the money is used, the line item can be replenished.

Large Failure. If the board believes a significant slope failure may occur and has identified the probable failure, the board should not wait for the failure to occur but should, instead, take action to stabilize the slope before it fails.

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Adams Stirling PLC