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Why Reserve?
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Simply covering annual operating expenses is not enough!
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Failing to plan is a plan
for failure. Special assessments are often substantial, usually
unpleasant, and frequently unfair; especially for those living on a fixed
income. A detailed and comprehensive reserve study can help reduce or
eliminate the need for such assessments.
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Many governing documents
(and some state laws) for common interest developments require community
associations to conduct a reserve study or maintain adequate reserve
funding. For example, Minnesota Statute 515B.3-114 reads: "The
annual budgets of the association shall provide from year to year, on a
cumulative basis, for adequate reserve funds to cover the replacement of
those parts of the common elements and limited common elements which the
association is obligated to maintain, repair, or replace…"
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If you are unsure, or if you
know your funds are inadequate, our services are essential.
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RDA's reserve studies begin
with a comprehensive analysis of the client's operating guidelines and
other governing documents to determine the extent of the client's
maintenance and reserve requirements. During an on-site inspection,
we complete a detailed inventory of all assets for which the association
is responsible.
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Using localized cost guides,
economic and investment parameters and our detailed inventory of the
client's assets, we produce a complete reserve analysis study which
includes detail reports for each asset, a reserve fund status report, a
required monthly contribution report, and 30-year projections.
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All RDA clients receive our
complete dedication throughout the report generation process, and we
continue to offer our support and guidance throughout the entire year.
We are available to answer all of your questions regarding reserve
budgeting and long-term planning, including the most complex questions,
starting with "What if…?"
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A General
Reserve Primer -
Click
Here to Open |
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"Many
governing documents (and some state laws) ... require community
associations to conduct a reserve study or maintain adequate reserve
funding."
"...we
produce a complete reserve analysis study which includes detail reports
for each asset, a reserve fund status report, a required monthly
contribution report, and 30-year projections."
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