Ask the Expert: Homeowners and Condo Owners Association Reserve Study

Adequate funding for your community improvements begins with a solid homewners association reserve study

Did you know that up to 36% of board members in Texas don't know if they have fully funded reserves? Let's make sure your board is on top of this critical information, whether it's a homeowners association reserve study or reserve study for a condo association.

Watch the video to learn from industry expert Andrew Stoutenburg (Regional Executive Director, Reserve Advisors) about:

• The game-changing impact of a reserve study on your association
   
• What your board needs to know to prepare for a reserve study

Get answers to your most asked reserve fund study questions:
   

Why does a reserve fund study cover a 30-year period when most association boards focus on planning for the next 3-5 years?

• Required minimum of 20 years per National Reserve Study Standards
• Ensures owners are paying their fair share
• Long term, equitable funding allows boards to then focus safely on the near term projects
• Many reserve studies now also include a near term project prioritization section

How often should a reserve study be updated? Why?

• Not mandatory in the State of Texas
• Reserve studies are forecasts, and guaranteed to become outdated and incorrect
• Inflation rate changes
• Fund balance may be below/above expected levels
• Projects that have been accelerated or deferred can make an impact
• Component deterioration is occurring at a faster than anticipated rate

What criteria should an association use to prioritize projects if they are not following funding recommendations in a reserve study?

• Review near term schedule to identify projects
• Would deferring a particular project jeopardize the safety of homeowners or functionality of a building?
• Does deferral lead to more costly repairs and replacements?
• What types of projects can an association limit in scope or defer altogether if lost revenue impacts their ability to fund upcoming projects?

FirstService Residential's Ask the Expert webinar miniseries aims to answer your most frequently asked questions on a variety of key topics. For more information about vendor management done right, contact our partners at VIVE.