what is a reserve study and why do we need one?
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3650 Concorde Parkway – Suite 100, Chantilly, VA 20151 www.usicommercial.com
What is a Reserve Study?
Why Does Our Association Need One?
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Agenda
• What is a Reserve Study and Why Do We Need One
• What is the Proposal and Why is it Important
• What is the Scope of Services
• The Study Time Period
• Client Review and Revisions
• The Funding Method
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Bio – David Rothbart, RS
• David Rothbart, RS
Director of Reserve Study Operations
CAI Certified Reserve Specialist
NSEC Certified Environmental Consultant
Nevada Licensed Reserve Specialist
Tremendous experience planning and completing studies
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What is a Reserve Study and Why Do We Need One?
• A Financial Planning Tool
Designed to assist the Association Board in
*Anticipating and *Preparing for the properties
major repair and replacement projects of
Reserve Funded assets
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What is a Reserve Study and Why Do We Need One?
Some key components in a Reserve Study would include but not limited to:
• Asphalt Roadways
• Roofing
• Exterior Cladding
• Capital Painting
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What is a Reserve Study and Why Do We Need One?
A Reserve Study includes Two main sections:
•A Physical Analysis of the Reserve Funded Assets
•A Financial Analysis used for current and future planning
•Study Performed to CAI National Standards
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What is the Proposal and Why is it Important?
•The Proposal set the parameters
•Outlines the physical analysis
•Outlines the financial analysis
•Establishes the price for the service provided
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What is the Proposal and Why is it Important?
•The Community Location
•What the Community Consists of
•Buildings – Roadways – Amenities, etc.
•When was the Property Built
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What is the Scope of Services?
•Visual Assessment of Reserve Components
•Life Valuation of Reserve Components
•Review of Existing Reserve Financials
•Review of Existing Reserve Fund Study
•Compile and Inventory Components
•Provide a schedule and cost to cure
•Performed to CAI Standards
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What is the Scope of Services?
• A tool to assist the association in developing a funding plan
• Review of site plans, building plans and other collateral
• Reserve funding financials provided
• Compile and inventory reserve funded components
• Provide life valuations of reserve funded components
• Include appropriate photographs
• Provide replacement cost estimates and funding plan
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Study time Period
• 30 Year Time Frame for Study
Unless otherwise specified by client
•Reserve Study Updates Every 3-5 Years
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Client Review and Revisions
•Collaborative Approach
• Interactive Relationship with Clients
•Comprehensive On-Site Evaluation
•Review of Study
•Revisions Within 60 Days if Necessary
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The Funding Method
•Cash Flow Method with a Full Funding Objective
•Combining the two eliminates
Weaknesses of a Single Funding Method
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Let Us Help You
• By reviewing your reserve study needs
• By providing a proposal • www.usicommercial.com/reserve-study
• By providing presentations
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Contact Info for Your Reserve Study Needs
David Rothbart, RS [email protected]
(888) 225-3755