Expert Opinion: Arizona HOA Reserve Analysts Discuss Community Funding and the Impact of HA5 High Density Mineral Bond
For Karl and Tom Thompson, reserve study experts, there is a common thread among HOA budget problems: asphalt preservation. They found that by suggesting a High Density Mineral Bond like HA5 (instead of a traditional seal coat program), communities can see huge long-term savings. This high-performing surface treatment helps HOAs avoid dipping into reserve accounts, raising dues, or disrupting community activity — especially in the Grand Canyon State.
The Problem
Arizona HOAs are often underfunded, leading to tight budgets, neglected reserve accounts, and unnecessary spending. Reserve study experts face pushback when recommending that Arizona pavement preservation measures be included in the HOA budget.
The Solution
Karl and Tom Thompson, co-owners of Advanced Reserve Solutions, present studies that include HA5. By creating long-term savings with HA5, communities can worry less about their asphalt preservation budget and focus on protecting this expensive asset year after year.
How an HOA Reserve Study Can Help Budgeting
Arizona pavement preservation can be difficult to navigate, especially with homeowners associations. HOAs create budgets with community dues in mind, and anything that raises those dues gets a lot of pushback. Often, road maintenance is a big portion of the HOA budget.
That’s where an HOA reserve study can come in handy. Analysts can project future spending and savings for specific communities based on weather patterns, population, and products available. With an HOA reserve study, community managers can assess how much money they need for issues like Arizona pavement preservation.
At Advanced Reserve Solutions, HOAs and common interest developments worldwide receive long-term budgets and recommendations based on extensive research. Advanced Reserve Solutions co-owners Karl and Tom discussed the benefits of having a reserve account despite organizations’ reluctance.
“The biggest pushback we get in regard to a reserve study is raising dues to fund reserves,” said Karl. “We do our best to provide reserve studies that don’t require increases.”
However, HOAs in Arizona are often underfunded. Budgets are tight, and reserve accounts are neglected. This can leave communities in a vulnerable position, especially when special assessments and projects are needed.
For communities struggling with an HOA budget, specifically with Arizona pavement preservation, a High Density Mineral Bond like HA5 can be a lifesaver.
Why Recommend HA5 Over Seal Coat?
HA5 solves one of the most common problems HOAs face: long-term road maintenance. Asphalt is one of a homeowners association’s most expensive assets, and prolonging its usefulness is important in budgeting.
But why does asphalt even need a protective covering? Why is a High Density Mineral Bond like HA5 beneficial?
While it’s technically made of stone, asphalt is actually very fickle and pricey to maintain. Made from a combination of gravel and binding agents, it’s designed to be flexible and adapt to changes in weather and driving patterns.
But in Arizona, where the sun beats down daily and temperatures often climb above 100 degrees Fahrenheit, asphalt can quickly become brittle, inflexible, and prone to damage. The most common solution for this quality degradation is frequently applying a protective seal coat over the asphalt. Every two to three years, Arizona HOAs spend a portion of their budget on this pavement preservation, which can become quite costly over time.
HA5 lasts longer than seal coat, performs better, and is more aesthetically appealing.
HA5 can help HOAs keep their dues flat year over year by not requiring increases in reserve funding to cover asphalt costs.
“The associations that are using [HA5] are going to experience significant savings in the long run,” said Karl, “and asphalt rehabilitation projects just aren’t needed [in the budget] anymore.”
Tom said that when an organization requests a reserve study, Advanced Reserve Solutions can now provide options beyond a traditional seal coat. “We offer [HOAs] the opportunity to have a secondary reserve study done that incorporates an HA5 maintenance program. In the short term, HA5 is a more expensive sealing product, but when you’re only doing it every eight years as opposed to every three with a seal coat, you start to see significant savings down the road.”
Karl also mentioned the advantage of using HA5 as an asphalt preservation product that can impact a community for decades. “[With HA5], there’s the elimination of a full rehabilitation of the asphalt at the 25- to 40-year mark,” he said. “That’s where you see huge savings because HA5 is slowing the degradation of the asphalt.”
How HA5 Will Shape Future HOA Budgets
As analysts like Karl and Tom continue to see the benefits of using a product like HA5, communities can reshape budgets and long-term Arizona pavement preservation.
“It’s becoming more known across the management and HOA industry,” said Tom. “We’re getting a lot of questions about it.”
He also mentioned how firsthand experience drives their decision to include HA5 in reserve studies today. “We’ve seen eight-year-old HA5 and how it still performs. We’ve seen a two-year-old seal coat and how it often doesn’t perform. We take that visual evidence into a financial budgeting model that allows boards to start making educated decisions.” Contact us today to find out more about how HA5 can help shape your community’s future, and check out more of our case studies below.
Related Case Studies
Fayette County is one of Georgia’s leading municipalities when it comes to preserving asphalt assets. Learn how they’ve embraced a culture of innovation to lower costs for taxpayers.
Municipalities across the country turn to HA5 High Density Mineral Bond to extend the life of their asphalt assets. Hear why these public works professionals rely on HA5.
The Saguaro Highlands Community in Scottsdale, AZ recognized that they needed to protect their asphalt. After doing their due diligence, they discovered HA5, a High Density Mineral Bond, that would allow them to extend the life of their asphalt much longer than a traditional seal coat.