Reserve Study

Full Reserve Study

A Full Reserve Study includes a Physical Analysis, which not only lists each individual component forming the basis of the study, but also includes the quantity, estimated replacement cost and estimated remaining useful life for each component. This then provides you with a basis for determining how much money your Association should be setting aside to repair or replace these items in future years.

One of the keys to the Full Reserve Study is the Financial Analysis, which includes a review of a 20 year projection giving the Association a true picture of their financial well being. By looking at both the immediate and long term, it is possible to establish a reserve funding policy which most accurately fits your specific needs. This projection gives the Association the necessary information to develop its yearly contributions based on an average over a number of years, and assists its investment strategy for the funds, because it identifies when they will actually be needed.

A Full Reserve Study includes the following Scope of Work:

A review of the Association’s documents to determine which components make up the common and limited common elements (Component Inventory) as well as their quantities, as compared to the design documents and Public Offering Statement
A site visit to establish the current condition of all common elements in order to assign an estimated remaining useful life
Preparation of a Full Reserve Study, which includes a physical and financial analysis, including a 20-year funding plan and a threshold-funding plan

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