A Reserve Study is a budgeting tool intended to aid a community association or entity in planning for future expenses of jointly owned capital items such as roadways or common use areas. The reserve specialist assesses the condition and lifespan of each item then calculates the cost of upkeep over the next 30 years, allowing an HOA to set appropriate membership fees in order to save for future expenses.
A Full Reserve Study includes:
Inventory of all reserve components
Physical needs and conditions assessment
Photo inventory of deficiencies
Property Manager Interview and questionnaire
Reserve Fund analysis spreadsheet
Draft report for review before finalization of the study
1 hour results presentation- if requested
Optional Community Survey
HPA Reserve Specialist will conduct a site visit, inventory all capital items, assess the condition of capital items and project the future cost over the next 30 years. The reserve study takes into account the annual membership fees and reserve fund contributions of an entity and makes budgeting recommendations.
HPA can provide a study for housing developments while key capital items are incomplete like roads, sidewalks, or amenity centers. The Specialist can complete an inventory on what is built at the time of the study so the HOA can get started on the right foot. After construction is complete, HPA returns to update the study.
While the ownership is transitioning from developer to HOA
Every 3-5 years, HPA recommends updating the initial report by completing follow-up site visits and reports completed by the reserve specialist. HPA takes into account the current condition of items weighed against the initial projected condition and creates an updated report.
This type of update requires no site visit. It occurs in situations when the condition or replacement timing of capital items changes due to unexpected replacements, insurance claims, renovations, or if the list of capital items changes significantly.