Tips for Boards in Need of a Condo Reserve Study

Condo reserve study is vital planning tools for your property. Without an accurate, in-depth condo reserve study, you will be unable to develop an adequate financial reserve or a plan to meet the ongoing maintenance and replacement needs for your development. Of course, getting the right report is key here, and the secret to having access to the most accurate information is working with the right professional. Here are some important tips for any Board of Directors in need of a reserve study.

Customer Testimonials Matter

One of the first considerations you’ll need to make before hiring any professional or firm to conduct a condo reserve study is to do a little research on their background. Perhaps the most important thing to look for is a history of satisfied clients, and that is demonstrated very well in the number of customer testimonials. Pay attention to exactly what each customer says in their testimonial and consider how that will be of value to you.

Professional Affiliations

Any architectural firm you hire to complete your condo reserve study should be a member in good standing of several professional organizations. Moreover, they should be proud of those affiliations and should list them prominently on their website. Look for professional affiliations that include:
•The Community Associations Institute (CAI)
•The Association of Condominium, Townhome and Homeowner Associations (ACTHA)
•LEED certification
•American Institute of Architects

Environmental Expertise

Today, sustainability is a huge consideration for all properties. It makes good sense to ensure that the professional or firm you hire has the expertise and knowledge required. LEED accreditation is the most important credential to look for, but you need to see more than just credentials. You need to see a history of LEED-certified projects completed by the architectural firm.

Additional Services

Finally, you’ll need to ensure that the professional you hire is capable of offering more than just condo reserve studies. He or she should be able to supply you with modified reports, including transition studies and site plus clubhouse studies. Building repair studies, architectural unit reviews, construction monitoring, bid design documents and capital reserve studies should also be available to you.

With a licensed, accredited architectural professional by your side, you can ensure that your condo reserve study is as accurate and comprehensive as possible, while simultaneously avoiding the pitfalls that come with trying to create such a study on your own.

Comply With FHA Reserve Study Requirements

The Fair Housing Association or FHA has many rules regarding condominiums, and recent changes in the laws have left some boards confused about what is required of them under federal law. You should know that an FHA reserve study is required by law, and your state may have more stringent requirements. The best way to find out about the requirements in your area is to get in touch with an experienced architectural engineering firm like J. Hershey Architecture. You can have your FHA reserve study conducted and get advice on the best way to manage your Homeowner’s Association, or HOA, reserve funds.

Aside from legal requirements, it is a smart idea to get your FHA reserve study done for other reasons. A capital reserve study will tell you exactly what kind of wear and tear the common areas of your co-op or condominium are experiencing. Not only that, but your FHA reserve study will lay out a time frame for budgeting for these repairs and let you know exactly how much you’ll need to have on hand and when. Needless to say, there are lots of good tips in your study about how to handle your HOA reserve funds.

An architectural engineer will conduct the FHA reserve study by studying all the areas of your co-op or condominium that require repair at certain intervals, like roofing or roadways, or even replacement. Typically, a reserve study will not focus on things that are not supposed to need maintenance, like building structure, or things that require regular, routine maintenance, like landscaping. This is what the reserve study is not the end all and be all of your HOA reserve funds management practices. You always need to make sure you have money in your HOA reserve funds for unexpected expenses and emergencies. There are very definite risks when it comes to underfunding your reserves.

You need an architectural engineering firm that understands your unique needs and takes into account your community when conducting its survey. Every community is different and has different HOA reserve funds needs. By working with J. Hershey Architecture, you can be certain that the particular needs of your community will be balanced with the needs of the board, leaving everyone happy and well taken care of in the long run. Don’t make the mistake of trying to budget without truly understanding your reserve study. Rely on professional analysis to ensure that your financial future can be stable and sound.