THE reserve fund study
A Reserve Fund Study is a plan for the long-term funding of the shared components of your condominium corporation common assets. This may include items such as the roof, balconies, parking lots, building siding, common corridor carpeting, elevators mechanical systems, plumbing systems, etc. The report provides guidance for budgeting for those longer-term expenditures which do not occur every year, but that the owners collectively (through the board and property manager) are responsible to replace and repair. The study and information provided helps the board to plan expenditures and provides inputs to setting the overall condominium budget.
Reserve Fund Study Includes
- A physical inventory of all common property (including building systems such as roof systems, exterior walls, pavement, and landscaping, etc.)
- An analysis of the observed condition, actual and effective age, remaining economic life, and future replacement costs for each component of common property
- Determination of the level of reserves required to meet anticipated future costs.
- Analysis of the current balance of the reserve fund and how much the condominium corporation has been contributing annually.
- Development of funding model to assist in reaching the goals.