exact time frame, scope, and cost. While the reserve study is a budget tool that is constantly changing based on the other factors (hence the importance of an annual update of the study), it is important that the association pay attention to the funding recommendations in the study. Associations that are poorly funded and are contributing less than recommended by the study are at a high risk of a special assessment.
Perform a Building Envelope Investigation
A reserve study site visit conducts a limited visual review for budgetary purposes. It is typically performed from ground level and no destructive testing is performed. For associations that are responsible for the maintenance, repair, and replacement of exterior building assets, performing periodic building envelope investigations (also known as condition assessments) is imperative to having a complete picture of the condition of the association’s components. During an envelope investigation, intrusive investigation such as removing siding in targeted areas is performed to determine whether proper construction techniques were used and/or if hidden damages exist.
Intrusive investigation such as removing siding in targeted areas is performed to determine whether proper construction techniques were used and/or if hidden damages exist.
The results of such investigation can be incorporated into the association’s annual reserve study and can assist the association with narrowing down both the time frame and would want to replace the siding sooner and anticipate practice, perform a building envelope investigation after
a new construction building is transitioned to the owners, replacement.
Some common statements we hear are “we can’t afford this” and “the owners will never approve this.”
Be Transparent
The results of a reserve study update may not always be good news for an association, especially if the study recommends a special assessment or a large increase in reserve contributions. Because of this, some boards will decide to ignore the results of the study and one of the most common statements we hear as reserve study providers is “we can’t afford this” or “the owners will never approve this.” The problem is, ignoring things does nothing to change the fact that the expenses detailed in the study will unavoidably occur and the longer the association waits to take action, the more hurdles there will be. Therefore, it is important that the board of directors craft a plan to address both current and deferred maintenance needs, as well as a plan to fund the reserve account according to the recommendations of the study.
Share the entire reserve study,
Communicate More—Not Less
Present as much information as you can to owners as this will assist in helping the membership understand the necessity of the board’s plan. Information that can be helpful in this undertaking is the entire reserve study (not annual budget), copies of any other professional reports the association may have obtained (such as a building envelope investigation report), scope of work and costs from the association’s vendors, etc. Holding a meeting to discuss maintenance needs is often very helpful and it is likely that
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