Full Reserve Study
A Full Reserve Study includes a Physical Analysis, which not only lists each individual component forming the basis of the study, but also includes the quantity, estimated replacement cost and estimated remaining useful life for each component. This then provides you with a basis for determining how much money your Association should be setting aside to repair or replace these items in future years.
One of the keys to the Full Reserve Study is the Financial Analysis, which includes a review of a 20-30 year projection giving the Association a true picture of their financial well being. By looking at both the immediate and long term, it is possible to establish a reserve funding policy which most accurately fits your specific needs. This projection gives the Association the necessary information to develop its yearly contributions based on an average over a number of years, and assists its investment strategy for the funds, because it identifies when they will actually be needed.
A Full Reserve Study includes the following Scope of Work:
A review of the documents for the Community Association to determine which components make up the common elements and the limited common elements as well as their quantities. This is also known as the Component Inventory.
A site visit to establish the current condition of all common elements in order to assign an estimated remaining useful life.
Preparation of a Full Reserve Study, which includes the physical analysis as well as the financial analysis, including a 20-30 year funding plan and a threshold-funding plan.