PURPOSE

To identify and forecast the funding of the property elements likely to require reserve expenditures during the next 30 years

PROPERTY ELEMENTS

The property elements are set forth in the Declaration; the following is merely an example of one associations property elements

SEGREGATION OF PROPERTY ELEMENTS

Our analysis will include a segregation of the property elements for the purpose of identifying the areas of responsibility for repair and replacement:

• Reserve Components
• Long Lived Property Elements
• Operating Budget Funded Repairs and Replacements
  
• Property Maintained by Homeowners

RESERVE COMPONENTS

The Reserve Components are comprised of items likely to require Reserve Expenditures during the next 30 years:

• Exterior Building Elements; i.e., Gutters and Downspouts, Light Fixtures,    Roofing, Brick Work, Paint Finishes, Vinyl Siding, Wood Decks, etc.
• Property Site Elements; i.e., Asphalt Pavement, Concrete, Fences, Light    Posts and Fixtures, Retaining Walls, etc.
• Clubhouse Elements; i.e., Building Service Equipment, Interior, Roofing,    Windows and Doors, etc.
• Pool Elements; i.e., Concrete Deck, Fencing, Mechanical Equipment, Plaster    Finish and Tile Repairs, etc.

LONG LIVED PROPERTY ELEMENTS

Long Lived Property Elements are items without predictable remaining useful life expectancies:

• Electrical Systems
• Foundations
  
• Structural Frames
  
• Sewer and Water Pipes

OPERATING BUDGET FUNDED REPAIRS AND REPLACEMENTS

The operating budget provides money for the repair and replacement of certain Reserve Components:

• General Maintenance to the Common Elements
  
• Landscape
  
• Paint Finishes, Touch Up
  
• Signage
  
• Other Repairs Normally Funded Through the Operating Budget

PROPERTY MAINTAINED BY HOMEOWNERS

Certain items have been designated as the responsibility of the homeowners to repair or replace:

• Garage Doors
  
• Heating, Ventilating and Air Conditioning (HVAC) Units
  
• Interiors
  
• Windows

PHOTOGRAPHS

Documents the condition of various property components as of the date of the visual inspection

FINANCIAL ANALYSIS

Repair, maintenance, and replacement costs will be acquired and projected over time based on the determined life expectancy of each element which in turn will create the data for a Funding Plan.  Operation Account Budgets will be provided both historical and projected.

RESERVE FUNDING PLAN

The Reserve Funding Plan, utilizing spreadsheets, graphs, and text, will allow the Board to plan for any increases or decreases in the association maintenance fee and/or special assessments in order to maintain a fully funded reserve fund

RESERVE EXPENDITURES

By segregating the property elements (shown above) allows the Board to minimize the expenditures of the reserve account, therefore utilizing the operating account when at all possible

RESERVE STUDY UPDATES

An ongoing review by the Board and an update of the Reserve Study in two-three years is necessary to ensure an equitable funding plan since a Reserve Study is only a snapshot in time.  Many variables change after the study is conducted that may result in significant homeowner overfunding or underfunding of the reserve account.

CREDENTIALS

Our Reserve Study analysts have a combined 60 years of corporate operational, financial & accounting management experience, as well as, 20 years of structural engineering experience.  Their expertise consist of forensic financial auditing, projection cost analysis, financial forecasting, plan implementation and structural engineering.  Local third-party, Engineers, and General Contractors are used on an as needed basis.

Thank you for considering us for your reserve study needs.  The cost associated with completing a Reserve Study varies from Association to Association.

Please contact us with any questions or concerns and we appreciate your interest.

Sample Reserve Study.PDF