The Summerfield HOA is in the process of conducting a reserve study. The full reserve study report will be made available to all homeowners within the portal when the study is concluded.

What is a reserve study?

1. A reserve study is a long-term capital planning tool for HOAs and condominium associations.
2. It analyzes community assets, evaluates current reserve funds, and lays out a prioritized schedule of major repair and replacement projects—typically over 20–30 years.
3. The initial study includes an onsite inspection; updates are done every 3–5 years to keep plans and budgets accurate.

Why is it important for homeowners?

1. Protects property values: Timely repairs and replacements (roofs, roads, mechanical systems, pools, sidewalks) keep the community attractive and functional.
2. Reduces financial shocks: A good funding plan helps avoid special assessments and sharp fee increases by saving steadily for known future costs.
3. Ensures responsible governance: Boards have a fiduciary duty to plan ahead; a professional reserve study documents the logic behind decisions and provides continuity as managers and board members change.
4. Improves transparency: Clear tables, charts, and explanations help owners understand where their dues go and how future needs will be funded.

What does a reserve study include?

There are two core components:

Physical analysis

1. Inventory of common area components the HOA maintains.
2. Condition assessment, remaining useful life, and replacement/repair cost estimates.

Financial analysis

1. Current reserve fund status.
2. A fair, sustainable funding plan to ensure money is available when components need major work.
3. Long-term projections of contributions, expenses, and ending balances.

What is included in the reserve study? (per CAI standards)

1. Community summary: unit count, physical description, reserve fund condition.
2. 20+ year projections: starting balance, recommended annual contributions, projected expenses, ending balances.
3. Component list: quantities/descriptions, useful life, remaining life, current replacement cost.
4. Methods and objectives used to assess fund status and build the funding plan.
5. Sources for cost estimates.
6. Level of service (e.g., full study with site visit vs. update).
7. Fiscal year the study covers.

How often should a reserve study be updated?

1. Full initial study with site visit.
2. Updates every 3–5 years to reflect real-world changes in conditions, costs, and funding.

What does an HOA look for in a firm that conducts reserve studies?

1. Multi‑discipline engineering expertise.
2. Recognized credentials: CAI Reserve Specialist (RS) and/or APRA Professional Reserve Analyst (PRA).
3. Comprehensive, easy-to-understand reporting that includes tables, graphs, photos, diagrams, and spreadsheets—not just numbers.

What is the bottom line for Summerfield Homeowners?

1. A reserve study is our community’s investment roadmap: set aside funds today to pay for tomorrow’s predictable big-ticket items.
2. When done and updated properly, it supports stable dues, minimizes special assessments, and maintains the quality—and value—of our neighborhood.