Three Most Unusual Reserve Components

While conducting hundreds of Reserve Study site inspections each year, our team of Reserve Specialists occasionally run into some rather interesting assets that pass the Component List 4-part test and thus should have their repair or replacement costs reserved for.

Is it a Reserve Component (or a Capital Improvement)?

Interesting question, and not always clear. First we go to National Reserve Study Standards and the definition there of a Reserve component. A Reserve Component must pass all the following four tests:
1) that it is a common area maintenance responsibility
2) that it has a limited life
3) that it has a predictable remaining useful life
4) that it is above a minimum threshold cost of significance.