Reserves are the money an association accrues over time to pay for future repairs and replacements of community assets.
A Reserve Study is an in-depth analysis of both the physical components and the financial status of the association’s long term funding & planning. Among other things, a Reserve Study provides a savings plan which allows you to make small monthly contributions to your reserve account in order to have sufficient funding available when each asset needs to be repaired or replaced. Special assessments, which are often substantial and usually unfairly apportioned, are no longer required each time an asset needs replacement. And there’s no guessing as to how long a component will last or how much it will cost.