California Builder Services
A Reserve Study is a budget planning tool used by condominium associations and homeowner associations to create an effective funding plan for anticipated common area maintenance expenses over 30 years. Reserve Studies are vital to implementing and maintaining a financially healthy community association. Lending institutions such as the Federal Housing Authority (FHA) are adopting stringent requirements in the hopes of ensuring a minimum standard of Reserve Fund health. Some studies also show that an association with a fully funded reserve account, as evidenced by a Reserve Study, will help maintain and increase the property value of the homes. The Reserve Study includes two parts; a physical analysis and a financial analysis. The physical analysis consists of a site inspection which is a limited visual inspection of the association’s common area components and quantity of assets.