I was recently contacted by an association explaining their strategy of not funding their Reserves according to the recommendation in their Reserve Study. They looked at that recommendation, then decided on a smaller contribution rate that they felt was reasonable (about half, they explained).
Sometimes a client will be candid with us, and ask for the recently completed Reserve Study to be revised “because the Board has decided to not do the _________ project this year as recommended, they plan to do it __ years from now.”
Yesterday three things happened that were the result of people taking Reserve Study projects into their own hands. Weird that they all happened in one day. Unfortunate, because they each point out that some tasks are best left to a professional.
Independence in the Reserve Study process means freedom from control or influence. Independence means the Reserve Study professional is able to provide their complete findings and recommendations without interference.
So you’ve received your Reserve Study. You notice that the asphalt seal coat project, which the association just paid $30,000 to have done, shows a $20,000 estimated (current) cost in your Reserve Study.
In some areas of the country, specifically California where it is required by State Law, at least every few years a Reserve Study needs to be prepared on the basis of a “diligent visual site inspection”. But what does that mean?
