Reserve study

A reserve study is a document prepared by an outside company for the administrators of a property with multiple owners, such as a condominium association or Homeowner's Association (HOAs),containing an assessment of the state of the commonly owned property components as determined by the particular association's CC&Rs and bylaws. Reserve studies however are not limited only to condominiums and can be created for other properties such as resort complexes, apartment buildings, and office parks. [http://www.reservestudy.com/q1.html]

Reserve studies are in essence planning tools designed to allow for easier preparation of future maintenance projects.

Purpose

The purpose of the reserve study is to give those overseeing the maintenance of the property a better idea of what major expenses to expect and an educated estimate of when these expenses will occur. With this knowledge the the Homeowner's Association or property manager can create a more effective budget which also helps them to determine an appropriate amount of dues to charge each homeowner monthly to put towards reserves savings.

Relevance

In addition to being helpful planning tools, reserve studies are legally mandated in states such as california where laws have been enacted to require reserve studies of all homeowners associations. In California, the associated law is California Civil Code 1365. [ http://law.onecle.com/california/civil/1365.html] Specifically, this law requires reserve studies complete with a visit by the creator of the study every three years.

Creation

Reserve studies can be obtained through a variety of companies ranging from those companies specifically tailored towards providing such services to large engineering firms who complete reserve studies as a small aspect of their larger business. Recently, certification criteria have been created to allow for a more ordered system of identifying those individuals who have been specifically trained in the creation of reserve studies. One such certification, that of reserve specialist, is availible through the Community Association Institute. To obtain this certification, candidates must have prepared at least 30 reserve studies within the past 3 calendar years, hold a bachelors degree in construction management, architecture, or engineering (or something equivalent based on experience and education), and complied with various other rules and codes of conducts. [http://www.caionline.org/about/designations_rs.cfm ]

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