Ask the Expert: Reserve Fund Study
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Did you know that up to 36% of board members in Texas don't know if they have fully funded reserves?*
Adequate funding for your associaton and community improvements begins with a solid reserve fund study. Watch the video to learn from industry expert Andrew Stoutenburg, Regional Executive Director, Reserve Advisors about:
- The Impact of Reserve Studies
- How You Can Prepare for Them
Get answers to your common reserve fund study questions:
Why does a reserve fund study cover a 30-year period when most association boards focus on planning for the next 3-5 years?
- Required minimum of 20 years per National Reserve Study Standards
- Ensures owners are paying their fair share
- Long term, equitable funding allows boards to then focus safely on the near term projects
- Many reserve studies now also include a near term project prioritization section
How often should a reserve study be updated? Why?
- Not mandatory in the State of Texas
- Reserve studies are forecasts, and guaranteed to become outdated and incorrect
- Inflation rate changes
- Fund balance may be below/above expected levels
- Projects that have been accelerated or deferred can make an impact
- Component deterioration is occurring at a faster than anticipated rate
What criteria should an association use to identify & prioritize projects if they are not following funding recommendations in a reserve study?
- Review near term schedule to identify projects
- Would deferring a particular project jeopardize the safety of homeowners or functionality of a building?
- Does deferral lead to more costly repairs and replacements?
- What types of projects can an association limit in scope or defer altogether if lost revenue impacts their ability to fund upcoming projects?
FirstService Residential's Ask the Expert webinar miniseries aims to answer your most frequently asked questions on a variety of key topics. For more information about vendor management done right, contact our partners at VIVE.