Planning for the future is a cornerstone of responsible community management. For homeowners’ associations (HOAs), that future planning often revolves around reserve studies. These comprehensive assessments provide a roadmap for maintaining and replacing major components within a community, from roofs and roads to pools and landscaping. Read the article…………………………….
Trees and Landscaping: Operating or Reserve Expense?
The Community Associations Institute’s Reserve Study Standards do not present a minimum cost threshold for a component’s inclusion as either a reserve or operating expense. While certain components, like roofs, streets, and pools, are clearly capital intensive and fall within the reserve expense threshold, the classification of components like landscaping and trees can be more […]
How much do HOA Reserve Studies cost?
As a board member of an HOA or condominium association, ensuring the financial stability and longevity of your community’s shared assets is a great responsibility. One crucial tool in achieving this goal is a reserve study, which helps you plan and budget for future repair and replacement costs of common area components. The cost can […]
What Is A Reserve Study For HOA? Essential Guide for Homeowners
Managing a homeowners association (HOA) involves many tasks, but one of the most critical is ensuring financial health through reserve studies. Many board members find themselves puzzled by what this financial tool actually entails and its significance for their community. Our article will guide you through understanding reserve studies – breaking down their components, types, […]
Definitive Guide to Reserve Studies for Communities
Welcome to the foundational chapter on reserve studies, an essential guide tailored for Homeowner (HOA) and Condominium Associations board members. Whether you are newly appointed or have been navigating the nuances of HOA management for years, understanding the pivotal role of reserve studies is key to ensuring the financial health and longevity of your community. […]
The Impact of Exterior Elevated Element Inspections on the Reserve Study (CA)
While many condominium associations may be familiar with the elevated exterior elements (“EEE”) inspections and any repairs that may be required, it is easy to overlook the other obligations of Civil Code Section 5551 regarding the impact of the EEE inspections on the Association’s reserve study. Read the article…………………………….
Overcoming neglect: An Iowa community’s maintenance and reserve funding challenges
Generating adequate reserve funding in your community can seem like a daunting task, but doing so is a necessary step in providing for ongoing preventative maintenance, funding structural inspections and repairs, and safeguarding your community’s future. Take, for example, Cobblestone Owners Association, a 157-unit townhome community in Urbandale, Iowa. The community was forced to tackle […]
What Every Community Association Should Know About Reserve Studies
Imagine this: Your community’s pool is reaching the end of its life. You know it’s going to need repairs soon, but the funds just aren’t there. Sound stressful? It doesn’t have to be. That’s where a reserve study comes in. It’s a tool that helps community associations plan ahead—so when it’s time for major repairs […]
Reserve Study Basics: Essential Planning for HOA Boards
For homeowners associations (HOAs), understanding reserve study basics is key to managing assets effectively and maintaining long-term financial stability. A reserve study evaluates an HOA’s readiness to cover major repairs and replacements, allowing the board to allocate funds proactively. This guide will introduce you to reserve study essentials, explaining why they are necessary and how […]
Effective Communication of Reserve Study Results for HOAs
Effectively communicating reserve study results is essential for HOA boards to maintain transparency and trust with homeowners. When HOA boards clearly convey reserve study results and funding needs, they foster a better understanding among homeowners about the importance of long-term financial planning. This guide provides actionable strategies for presenting reserve study results, ensuring community support […]
SIRS Reporting Form Now Available (FL)
As you may be aware, recent updates to the Condominium Act (ss. 718.112(2)(g)9 & 10, F.S.) and the Cooperative Act (ss. 719.106(1)(k)9 & 10, F.S.) require associations to submit a statement to the Division within 45 days of receiving their structural integrity reserve study (SIRS). This statement must confirm that the study has been completed […]
The Importance of Regular HOA Reserve Studies in Virginia
HOA reserve studies play a crucial role in maintaining the financial health and stability of homeowners associations in Virginia. These studies provide a comprehensive assessment of an association’s long-term financial needs, ensuring that adequate funds are set aside for future repairs and replacements of common area assets. By conducting regular reserve studies, HOAs can avoid […]
Capital Reserve Studies: Best Practices for Accurate Budget Planning
Capital reserve studies are essential for accurate budget planning in churches, nonprofit organizations, and other entities managing significant assets. These studies provide a comprehensive analysis of an organization’s financial health and long-term funding needs. By examining current reserves and future expenditures, they help leaders make informed decisions about maintaining and replacing critical components. Read the […]
Reserve Study for HOA: Ensuring Long-Term Financial Health
A reserve study for HOA is a crucial tool for ensuring the long-term financial health of homeowners associations. It provides a comprehensive analysis of an HOA’s assets, their expected lifespan, and the funds needed to maintain or replace them over time. This study helps board members make informed decisions about reserve funds and maintenance planning. […]
Understanding Reserve Studies in Washington State
It helps maintain property values and ensures the financial health of the community. This comprehensive evaluation examines the current state of common areas and projects future expenses for repairs and replacements. The reserve study process involves key players, critical components, and various levels of analysis. Throughout this article, we’ll explore Washington’s reserve study laws, interpret […]
What is an HOA Reserve Study: A Comprehensive Guide
Managing the long-term maintenance and replacement of shared community assets is a critical responsibility for Homeowners Associations (HOAs). To ensure they are financially prepared for these future expenses, HOAs rely on a tool called a Reserve Study. A Reserve Study helps the HOA assess the condition of its common areas and structures and plan financially […]
Crunch Time: Implementing Structural Integrity Reserve Study (SIRS) Requirements (FL)
With budget season and the Structural Integrity Reserves Study (SIRS) deadline fast approaching, condominium associations should already be considering how they will implement SIRS-related obligations and the timing in which funding will begin. Condominium associations that haven’t yet obtained their SIRS should already be making arrangements to do so prior to the end of the […]
Frequently Asked Questions About Reserve Studies (CA)
A reserve study is a written report that evaluates the common areas of a homeowner association. It provides guidance on how much your association should be setting aside each month for reserves so it can meet its future obligations without special assessments. Reserves are needed to pay for the replacement of common area components such […]
Everything You Wanted to Know About Reserve Studies (CA)
HOAs in California are largely governed by the Davis-Stirling Act, a series of statutes located in the Civil Code. In other words, all HOAs in California must abide by the Davis-Stirling Act, as well as other applicable California laws. One of an HOA’s most important obligations is to maintain and repair (and where necessary, replace) […]
Reserve Studies 101 (FL)
To help prevent another tragedy like the Champlain Towers collapse in 2021, Governor DeSantis signed Senate Bill 4D into law, which requires that all condo buildings taller than three stories and 30 years or older complete a structural reserve study every ten years. Buildings within three miles of the coast must complete their first reserve […]
Decoding Reserve Studies
RESERVE STUDY. The term is common in the HOA lexicon. Managers know their associations need them. Board members know they need them. But what is a reserve study, really, and why are they getting so much attention now? Well, it all comes down to – what else – money. Due to the number of unanticipated […]
New Reserve Study Requirements for Illinois Community Associations Proposed for 2025
Illinois House Bill 0220 (HB0220) is a legislative proposal that amends both the Common Interest Community Association Act and the Condominium Property Act……The bill outlines the requirements for these reserve studies, ensuring that associations regularly assess and plan for the maintenance and repair of shared infrastructure. Read the article…………………………….
Understanding the Michigan Reserve Study Bill: Essential Updates for Condominium Associations
Did you know that Michigan’s HB 5019, a new bill pending in the Michigan House, aims to bring significant changes to the way condominium associations manage their reserve funds? Currently, Michigan law requires that condominium associations maintain a reserve fund for major repairs and the replacement of common elements. The state administrative code mandates that […]
The Importance of Reserve Studies for HOA Management: Lessons From Surfside Beach
As an HOA management company executive, I urge all community leaders to prioritize long-term maintenance and the proactive identification of structural needs within their properties. Recent events have highlighted the critical importance of regular inspections and reserve studies in safeguarding our communities. The closure of the Sandfiddler condo building in Surfside Beach due to severe […]
Communicating Reserve Study Results to Homeowners
Board members and managers sometimes ask us how to effectively communicate the results of their Reserve Study to homeowners, or how to “sell” the value of a Reserve Study to their homeowner members. We’ve spent decades focusing on preparing Reserve Studies for our clients, but appreciate now that boards and managers often need some help […]
Decoding Reserve Studies
“Reserve Study.” The term is common HOA lexicon that just about everyone in our industry has heard. Managers know their associations need them. Board members know that they need them. But what are Reserve Studies, really, and why are they getting so much attention now? Well, it all comes down to – what else ? […]
What Is a Reserve Study For HOA & Why It Is Important
HOAs (Homeowners Associations) are essential for maintaining property values and ensuring shared amenities remain in top condition for all residents. Understanding and managing your HOA’s finances, particularly the HOA reserves, is a major part of this responsibility. An HOA reserve study is a key tool to help with this task. Read the article…………………………….
Reserve Studies and Their Impacts on POAs (TX)
The spotlight on POA financials has been shining bright over the last several years. Since the 2021 collapse of the Champlain Towers South Condominium in Florida, state legislators, the media and loan providers, including Fannie Mae and Freddie Mac, are more closely scrutinizing the financial state of POAs. Fannie Mae and Freddie Mac in particular […]
Reserve Study vs Property Condition Assessment
In a comprehensive examination, this discussion delineates the essential differences and similarities between reserve studies and property condition assessments (PCAs), pivotal in the realms of condominium, homeowners’ associations (HOAs), and townhome associations management. Read the article…………………………….
Navigating Financial Challenges: Structural Integrity Reserve Studies
Ensuring the structural integrity of buildings is a primary concern for community associations in Florida, where climate and weather events can pose a significant threat to buildings and their residents. Structural Integrity Reserve Studies (SIRS) address this by offering crucial insights into a building’s condition and future maintenance needs, safeguarding buildings against potential damage and […]
Free capital reserve studies available for APCHA condo units (CO)
The Aspen-Pitkin County Housing Authority (APCHA) is seeking participants in a free initiative aimed at supporting homeowners’ associations (HOAs) in long-term planning for maintenance and major repairs. APCHA will fund 100% of the study costs, which amounts to nearly $167,000. The studies will seek to understand the financial health of HOAs in relation to future […]
Housing Matters: Capital reserves study for HOAs on the horizon (CO)
During the recent Jan. 17 Aspen-Pitkin County Housing Authority board meeting, the APCHA board approved spending $170,000 to fund capital reserve studies for up to 40 APCHA homeowner’s associations. Read the article…………………………….
Developing HOA Reserve Study Procedures for Specific Assets (CA)
Homeowners’ associations (HOAs) serve as the guardians of their communities. Moreover, they’re responsible for maintaining and enhancing the quality of life for residents. A fundamental aspect of this stewardship involves prudent financial planning and establishing reserve funds. Read the article…………………………….
Navigating Differences: Reserve Studies and Structural Integrity Reserve Studies
The core purpose of any reserve study is the same – to serve as a capital expenditure forecasting tool and reserve funding plan to offset such expenditures. These resources provide knowledge on the true cost of ownership for your community and aim to ensure the physical well-being of your association. However, there are some key […]
Reserve Study Standards
The purpose of the Reserve Study Standards is to inform and guide the reserve study provider, such as a Reserve Specialist® (RS), with the minimum requirements necessary for the preparation of a reserve study. Read or download the study (PDF)…………………………………..
New Proposed Michigan Bill Will Require Condominiums Conduct Reserve Studies
HB 5019 is a new bill pending in the Michigan House that will require condominium associations in the state to conduct periodic reserve studies to help plan for future repairs and replacements. The Community Associations Institute’s Michigan Legal Action Committee fully supports this bill and is undertaking efforts to gain legislative support. Read the article………………………………
Reserve Studies Made Simple
A reserve study is a budget planning tool that provides a detailed evaluation of a homeowners association’s common area assets and an analysis of its reserve funds. Physical Analysis A reserve study provider performs an on-site inspection to evaluate the physical condition and repair/replacement cost of the association’s major common area assets. Financial Analysis Read the […]
How Much Does a Reserve Study Cost?
This is often one of the first questions a board asks when they are presented with the topic of reserve studies. As boards begin to engage with reserve study providers, odds are that most receive, at a minimum, three bids to conduct a reserve study, all of which present a different cost for a variety […]
New Reserve Study Standards (CA)
The primary duty of an association is to maintain, repair, and replace the common areas. That is why they are created in the first place. Unfortunately, boards failed their duties at Champlain Towers, and 98 people died. In the wake of that tragic loss, new standards were implemented nationwide to help avoid future losses. Read […]
SB 154 New Reserve Requirements and Exceptions For Condominium Associations (FL)
The new law, SB 154, passed in 2023, the following language was enacted, “In a budget adopted by an association that is required to obtain a structural integrity reserve study, reserves must be maintained for the items identified in paragraph (g) for which the association is responsible pursuant to the declaration of condominium, and the […]
What You Need to Know About Florida New (2023) Senate Bill 154: Structural Integrity Reserves (SIRS) Studies
Florida Senate Bill 154 has been signed into law and brings significant changes to Structural Integrity Reserves (SIRS) studies, a crucial element in ensuring the safety and long-term maintenance of condominium buildings across the state. These updates address various aspects, from who can perform the inspections to what needs to be included in the reserve […]
Condo Column: The proper Reserve Study (CT)
Last time I explained why the need for a Reserve Study exists. This time, some ideas of what you should have in one. First, as a reminder, a reserve study is simply a better budget planning tool that identifies the components an association is responsible to maintain or replace, the current status of the reserve […]
HOA Reserve Studies: How to Use Reserve Study Data to Plan for Changing Economic Conditions
Homeowners Associations (HOAs) play a crucial role in maintaining the value and functionality of communities. Part of this responsibility involves managing financial reserves to cover future expenses, such as repairs and replacements of common elements. Read the article………………………..
Landscaping and Irrigation – Are They Included In Reserve Studies?
When your association decides to commission a reserve study, you may be wondering what components will and will not be included in the capital plan, or, if certain elements can be included. Landscaping and irrigation are both important parts of any community, but are they included in a reserve study? Read the article………………………..
Enhancing Community Safety and Financial Planning: New Reserve Study Standards
Community Associations play a vital role in managing and maintaining the shared assets of their members. However, ensuring the safety and longevity of these properties requires meticulous planning and budgeting. In response to the tragic incident at Champlain Towers South, the Community Associations Institute (CAI) has taken decisive steps to promote safer and financially sound […]
What is an HOA Reserve Study: A Comprehensive Guide
Homeowners Associations (HOAs) play a crucial role in maintaining property values, enhancing community amenities, and ensuring a high quality of life for residents. A well-executed HOA reserve study is an indispensable tool for achieving financial stability and long-term planning. In this comprehensive guide, we will delve into the intricacies of HOA reserve studies, shedding light […]
Do Water Lines Belong In A Reserve Study?
When deciding whether a common area item belongs in a reserve study, refer to The National Reserve Study Standard four-part test: Is this item Association responsibility? Does this item have a limited useful life expectancy? Does this item have a predictable remaining useful life? Is the cost above a minimum threshold? Read the article………………………..
Maryland Reserve Studies – What to Know; What to Do
In Maryland, condominiums have existed since at least 1964, when the plats for Charles Village Condominium and Central Park Condominium were recorded in the Land Records of Prince George’s County. However, housing cooperatives and homeowners associations predate even that. Read the article………………………..
A New Era for Reserve Studies
Recognizing the need for revised guidelines, CAI released updated Reserve Study Standards in May to provide communities with an improved framework for effective reserve planning. Key changes and benefits offered by the latest standards include a particular emphasis on structural inspections and maintenance. Read the article………………………..
A Closer Look at The Latest Changes to CAI’s Reserve Study Standards
In March of 2022, a task force of fourteen community association industry experts gathered to begin the process of revising Community Association Institute’s (CAI) Reserve Study (RS) Standards. Originally published in 1998, the RS Standards provide a consistent framework under which reserve study providers and common interest communities should operate in tandem – a necessary […]