What is a Reserve Study?
A reserve study is 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
What is the Reserve Study’s purpose?
The purpose of a reserve study is to 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. By statute and good business practices, common interest communities, special districts, governing agencies, businesses, non-profits, utilities, and others are prime candidates for Reserve Studies.
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 before 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 cost of a Reserve Study depends on the time required for physical inspection, data analysis, and report generation, with component complexity and quantity as the predominant 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?
Simple! Fill out our online request form or call us toll free at (877) 708-0600.