Reserve Study FAQ

A reserve study is the capital plan for the community and it is the framework for how the community will spend money on capital improvement project. Reserve studies summarize projects and analyze costs, typically over a 30 year period, although the timeline is dependent upon the community assets and input from board members.

Communities should follow state requirements when determining how often a study should be conducted. In lieu of state requirements, homeowners' associations should consider conducting a study every 5 to 10 years, and condo associations about every 5 years. 

Many communities have more assets than they realize. The line between what is the responsibility of the community and what is the responsibility of the local governmental agency is typically very blurry. Most communities assume the local government will maintain assets such as streetlights, street signs, roadways, and stormwater systems but that is not always the case. Our reserve studies work with community managers and board members to identify and understand the assets that are the responsibility of the community.

It is always more beneficial to conduct a reserve study before undertaking major capital projects. The reserve consultant will work with the community managers and board members to devise a funding strategy that is most efficient for undertaking the project(s). This could include staggering projects over multiple years or combining projects together that would generate savings.