What’s included in a Reserve Study

To comply with the Community Association Institute's (CAI) guidelines

A reserve study should include the following:

        A summary of the association’s components, including the number of units, physical description, and the financial condition of the reserve fund.

        A projection of the reserve starting balance, recommended reserve contributions, projected reserve expenses, and the projected ending reserve fund balance for a minimum of 20 years.

        A tabular listing of:

·        the component inventory

·        component quantity

·        expected useful life of each component

·        remaining useful life of each component

·        current replacement cost of each component

There are three types of Reserve Studies.

The statistical study– The above tabulations are completed without visiting the site.  Evaluation of the based on what was originally designed with information form the board.

On Site study – All measurements and condition assessment are made based on visiting the site.  These include:

·                    Basement inspections since typically the entire structure including basement walls and floor joists are association assets even through they are inside the structure.

·                    Attic inspections since roof trusses, roof sheathing and attic ventilation are typically association assets

·                    Roof inspections to determine problems with premature aging, undersized gutters and downspouts, flashing and chimney problems.

·                    Property inspections to evaluate drainage, sidewalks, curbing, parking areas, deck problems and poor deck designs.