If your association isn’t getting a reserve study, it’s impossible to determine how much money it should have in its reserves, because you’re simply taking a guess. How can you make sure your HOA or condo association understands reserve studies?
Ursula K. Burgess, Esq., a shareholder at Rees Broome, PC, in Tysons Corner, Va., CAI’s 2019 President-elect, and a CAI Board of Trustees member, tells us why reserve studies are important to the health and stability of an association.
- Reserves take care of the infrastructure and the capital components of the association.
- Reserve studies are conducted by professionals who specifically evaluate the life of all the capital components and indicate how much money an association needs to save each year to replace each component based on their assessment.
- Reserve studies should be conducted regularly. For example, in Virginia, reserve studies must be done every five years.
Related: Why Does Your HOA Need Reserves?
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