Community association reserve study typically includes the following contents:
Physical inventory: A list of all the significant assets of the association's common areas, such as buildings, roads, sidewalks, bridges, landscaping, and recreational facilities.
Condition assessment: An evaluation of each component's condition and helpful life, including an estimate of when each piece will need to be repaired or replaced.
Cost estimates An estimate of the cost to repair or replace each component based on current market prices and inflation projections.
Funding plan: How the association will fund the anticipated repair and replacement costs, including recommendations for the number of reserves that should be set aside each year.
Risk assessment: An evaluation of the risks associated with each component, including the likelihood of failure and the potential consequences of failure.
Analysis of existing reserves: An analysis of the current reserves held by the association and whether they are adequate to cover the anticipated repair and replacement costs.
Alternative funding scenarios: An analysis of alternative funding scenarios, such as special assessments or loans, in case the reserves are not sufficient to cover the anticipated costs.
Executive summary: A summary of the key findings and recommendations of the reserve study, presented in a format that is easy to understand for the association's board of directors and members.
The contents of a community association reserve study may vary depending on the size and complexity of the association, as well as the requirements of state and local laws. It's essential to work with a professional reserve study provider to ensure the study is comprehensive and accurate.