Reserve Fund Studies for Condominium Properties
Reserve studies require condominium corporations to create and maintain a fund to provide for major repairs and renovations of property the corporation owns. This applies to the buildings themselves, as well as common property such as the parking lot or underground utilities. A designated portion of the Owner-paid monthly common element fees fund this reserve. A reserve fund study is a long-range financial document designed specifically for condominium communities. It includes a list of the major physical components of a property and an analysis of the components' condition and projected life cycles. A reserve fund also identifies the projected costs to repair or replace these building components and assesses whether or not adequate funds exist to take care of these repairs. Finally, the study includes a financial plan that projects future costs, as well as the estimated reserve fund contributions that will be needed to cover these expenses over time. If you have any questions conc...