Reserve Fund Study
A report that charts a long-range course for a board | council to manage the common assets under its responsibility.
Since a development’s assets drive the value of the members’ homes – this is important.
A reserve study analyses major repair and replacement needs such as concrete repairs, painting or roofing – that happen periodically – and provides a recommended funding plan for accumulating monies to undertake the work when it is actually needed.
The results have a budgeting role rather than a construction or building analysis one, although there are elements of each in the reserve fund analysis.
The study is typically based on visual observations rather than on forensic testing.
The reserve study assumes that regular scheduled maintenance was and is being conducted to prevent premature major repairs and/or replacements.