Reserve Studies work to convey your community’s capital planning needs to current and future boards, along with supporting the Board’s fiduciary responsibility to maintain and enhance the community. A properly maintained community increases curb appeal and enhances property values, ultimately making the association a more desirable one to be a part of.
There is no statutory requirement to conduct a reserve study in the state of Ohio. However, we recommend all associations commission a study and periodic updates to stay on track with reserve funding and capital projects.
Short answer: kind of. Unless otherwise provided in the declaration or bylaws, associations shall adopt and amend budgets for revenues, expenditures, and reserves in an amount adequate to repair and replace major capital items as needed without special assessments, provided that the annual reserve contribution is not less than 10% of the budget (unless waived by a majority vote of unit owners). However, in our experience, many communities require more than 10%, and the only way to know the true cost of ownership is to conduct periodic reserve studies.
Your reserve study is an invaluable resource. As your long-term partner we want to ensure you understand the results of the report and recommendations for maintaining your Association’s common property. Our consultants are available to present our findings and recommendations to you and your Board. Furthermore, we understand that Boards change over time. Our team is also available for future stakeholders. If you have a question about the report or about a particular project, now or in the future, we encourage you to contact us.