top of page
< Back

Save this article  > 

Homeowners association reserve study guide

Phillip Livingston
Publication date:
February 28, 2024
Article Summary: 

A reserve fund serves as a financial cushion for homeowners associations (HOAs), allowing them to cover unexpected expenses and major repairs without resorting to special assessments. A reserve study determines the necessary contributions to the fund, predicts future repairs, and provides a detailed plan for the maintenance and replacement of major components. Benefits of a reserve study include fiscal responsibility, maintaining community values, and making associations more favorable to lenders. Ensuring an adequately funded reserve requires careful consideration of completed projects and utilizing smart strategies. The process of preparing a reserve study involves reviewing key documents, analyzing financial information, and projecting future expenses. Components like roof replacement, HVAC equipment, and paint are included in the study, while operational expenses and components with unpredictable life expectancies are excluded. Compliance with statutory requirements is essential, and owners should be involved in the funding decisions. When hiring a reserve study company, considerations include reputation, experience, qualifications, and locality.


Reserve fund, homeowners association (HOA), reserve study, financial cushion, special assessments, future repairs, maintenance, replacement, fiscal responsibility, community values, lenders, adequately funded, smart strategies, financial information, components, statutory requirements, funding decisions, reserve study company, reputation, experience, qualifications, locality.

Source Citation: 
Phillip Livingston
Homeowners association reserve study guide
February 28, 2024
Did you find this article useful? 
Your feedback is important not only to us, but to all the other key players in the condo industry.  Help us by letting us know if this article is relevant and useful.  This will help us prioritize articles that provide helpful guidance to other key players like you. 

Please login to use this feature.

bottom of page