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replacement, but also roofing replacement within the next few years. Asphalt parking and roofing are commonly an association’s biggest expenses. They also commonly have the same expected useful lives and higher inflation rates than other common components. There are ways to deal with these perfect storms and lessen their impact, but the board and property manager need to see them coming in order to have any chance of lessening the impact.


The reserve study lays the cards out on the table face up for everyone to see. Even if the reserve study reveals an upcoming difficult financial situation such as “insufficient funds” for an upcoming project, at least the cards will be out on the table and the facts will be known, so that the board can then be empowered to move forward. This information will allow them to inform the homeowners and seek another source of funding for that big upcoming project sooner, rather than later. When the reserve study doesn’t uncover any upcoming financial difficulties, that’s all the better: you have opened a box with the “grand prize reveal”! Most importantly though, the board will have the information they need to hunt that treasure down.


In conclusion, in order for the association board and property manager to make decisions in the best interest of their association, they need sound, factual information about their property. The reserve study provides them with both a physical analysis, and a financial analysis of the property. Overall, the reserve study will provide the association with both the physical and financial information they need to make sound informed decisions in the best interest of their association. In this way, every reserve study can be thought of as a map to dig up the treasure of your community.


REPRESENTING CHICAGOLAND’S CONDOMINIUM ASSOCIATIONS, HOMEOWNER ASSOCIATIONS AND COOPERATIVES


Our team of experienced attorneys is driven to handle every one of your association issues with excellent and timely service. We are  


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www.penhart.com · info@penhart.com 30 | COMMON INTEREST® A Publication of CAI-Illinois Chapter


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