BUYERS GUIDE: WHAT IS A RESERVE STUDY FOR COMMON INTEREST COMMUNITIES?
Video transcription: What is a reserve study? Well a reserve study is a budgeting tool that common interest communities like HOAs or condominium projects can utilize for their long-term budget projections related to the reserve account and the allocation to that reserve account.
In each of our reserve studies there is going to be a list of common area components that are maintained by the Association, there's going to be a schedule of expenses related to those common area components over a 30 year period and there's going to be funding plans in there to help guide a community to help pay for those items. Hopefully with little to no risk for reliance on special assessments, loans or deferred maintenance issues. There'll also be a measurement in the reserve study regarding the adequacy of the reserve account level versus how much it ideally would have at this particular point in time. This is a good indicator of the risk for a community for reliance on special assessments, for loans and for deferred maintenance in the future. To learn more about reserve studies and how and who can utilize and benefit from them please visit our website we have a lot more information there. Thank you so much.