What is a Reserve Study?
A budget planning tool which identifies the current status of the reserve fund and a stable and equitable funding plan to offset the anticipated future major common area expenditures. The reserve study consists of two parts: the physical analysis and the financial analysis. Our budget and finance committee is soliciting proposals to update our Reserve Study for next year’s budget. Source: CAI National Reserve Study Standards Click
What is the Reserve Study’s purpose?
Reserve Studies provide an equitable funding plan designed to defray the costs associated with future capital replacements.
Who needs a Reserve Study?
Several states (including California, Nevada, Oregon and Washington) mandate that most common interest communities conduct periodic Reserve Studies. Best practices also suggest that entities with long term facilities responsibilities conduct reserve studies. So, by statute and good business practices, common interest communities, special districts, governing agencies, businesses, non-profits, utilities and others are prime Reserve Study candidates.
When should the Reserve Study be performed?
Reserve Studies should be performed in accordance with appropriate state statutes. Most Reserve Studies should commence at least six months prior to the new fiscal year and be substantially complete prior to the overall budget process especially if loans or special assessments are possibilities.
How much does a Reserve Study cost?
The Reserve Study cost depends upon the time necessary for physical inspection, data analysis and report generation with component complexity and quantity the predominate factors. Community age, condition and location are also considerations, and professional management is an advantage. Click here to receive a free Reserve Study quote.
What is needed to perform a Reserve Study?
Reserve Study preparation requires governing documents, budgets, balance sheets, component inventories, site maps (plats), detailed responsibility maps (fences, roads, open land, etc), blueprints, access keys / codes, project location driving directions, vendor proposals, preferred vendor contacts (painters, roofers, pavers, landscapers, etc), engineering studies, prior studies, retainer fee and signed contract.
How is a Reserve Study finalized?
A Reserve Study is finalized at the sole discretion of the board. Once the board adopts a draft study with no additional revisions, the board via management directs the Reserve Study preparer to publish a final.
How do I get a Reserve Study?