Specializing in providing superior Community Association Management Services to
Condominium & Homeowner Associations
To identify and forecast the funding of the property elements likely to require reserve expenditures during the next 30 years
The property elements are set forth in the Declaration; the following is merely an example of one associations property elements
SEGREGATION OF PROPERTY ELEMENTS
Our analysis will include a segregation of the property elements for the purpose of identifying the areas of responsibility for repair and replacement:
The Reserve Components are comprised of items likely to require Reserve Expenditures during the next 30 years:
LONG LIVED PROPERTY ELEMENTS
Long Lived Property Elements are items without predictable remaining useful life expectancies:
OPERATING BUDGET FUNDED REPAIRS AND REPLACEMENTS
The operating budget provides money for the repair and replacement of certain Reserve Components:
PROPERTY MAINTAINED BY HOMEOWNERS
Certain items have been designated as the responsibility of the homeowners to repair or replace:
Documents the condition of various property components as of the date of the visual inspection
Repair, maintenance, and replacement costs will be acquired and projected over time based on the determined life expectancy of each element which in turn will create the data for a Funding Plan. Operation Account Budgets will be provided both historical and projected.
RESERVE FUNDING PLAN
The Reserve Funding Plan, utilizing spreadsheets, graphs, and text, will allow the Board to plan for any increases or decreases in the association maintenance fee and/or special assessments in order to maintain a fully funded reserve fund
By segregating the property elements (shown above) allows the Board to minimize the expenditures of the reserve account, therefore utilizing the operating account when at all possible
RESERVE STUDY UPDATES
An ongoing review by the Board and an update of the Reserve Study in two-three years is necessary to ensure an equitable funding plan since a Reserve Study is only a snapshot in time. Many variables change after the study is conducted that may result in significant homeowner overfunding or underfunding of the reserve account.
Our Reserve Study analysts have a combined 60 years of corporate operational, financial & accounting management experience, as well as, 20 years of structural engineering experience. Their expertise consist of forensic financial auditing, projection cost analysis, financial forecasting, plan implementation and structural engineering. Local third-party, Engineers, and General Contractors are used on an as needed basis.
Thank you for considering us for your reserve study needs. The cost associated with completing a Reserve Study varies from Association to Association.
Please contact us with any questions or concerns and we appreciate your interest.