The Catch Per Unit Per Month allows the board to raise association reserve dues by line item in order to get closer to the 100% funding level. In this example, if each unit increased its reserve funding by $197.58 per month, that would mean that all components in the reserve study would be 100% funded by the time their remaining life got to zero.
Does that mean we have to raise our dues from $173.63 by another $197.14? The answer is yes, but that is a tall order for homeowners to grasp. Most homeowners would balk at raising due by the amount. So, what do you do? Take a look at the example below to provide the answer.
In the example above, the 36" Perimeter Fence future replacement cost for painting is $5,679. Its useful life has reached zero meaning it is due for repainting now. However, since the reserve fund is only 67.55% funded, the assigned reserves (what has been saved thus far) is only $3,836.12 ( $5,679 x 67.55%) $1,843 short of the goal.
To have this item fully funded by the end of the fiscal year, the dues would have to be raised by $9.03 per unit for the next 12 months which would provide $1,842.12 ($9.03 x 12 x 17).
Add both together, $1,842.12 + $3,836.12 = $5,678.24, and you have the full amount for the repainting project by the end of the fiscal year.
So, if the reserve study indicates the dues need to be $173.63 Per Unit Monthly, adding $9.03 per unit, or $182.66 Per Unit Monthly would ensure all funds are available for the 36" repainting project at the end of the fiscal year.