Manage Your Community With Complete Confidence 

Prior to starting the reserve study, our consultant reviews your community’s governing documents that identify what is association responsibility. However, it is not uncommon for the governing documents to not be specific enough to properly determine which common elements are maintained through the association’s reserve account. As such, our initial review is followed up with a discussion with management and/or the board about each of the common elements and whether they want them included in the reserve study. While the association is responsible for maintaining all of the common elements, there is some latitude for the board to choose how they maintain them, and from which budget, reserves or operating. Those that are funded through reserves are included in the reserve study.

We base our estimates of replacement costs from privately sourced data, our proprietary database of client project costs, the unique conditions of your property, and our unmatched cost-engineering experience. Our privately sourced data reflects only your prevailing local labor and material costs. Additionally, we consider additional costs related to demolition, mobilization, and your unique existing conditions. We also apply information from our proprietary database of thousands of replacement projects sourced from client projects. Many of which are specific to your area.

Several factors influence the necessary level of reserve funds. The age and condition of each common element that the Association is responsible for, maintenance practices, interest earned on reserve funds, as well as inflationary adjustments that directly affect future costs. The reserve study includes an analysis of each of these factors and provides recommended contributions that establishes and maintains an adequate level of reserves.

A reasonable minimum threshold reserve balance, or low point in the cash flow analysis, will vary and is property specific. Variables that we consider when developing a minimum threshold for your Association include property size, property type, property age, and the capital intensive nature of the Association’s expenditures during the threshold year and the years immediately following.