HOA Reserve Study

Marq.
The first thing you mentioned in the most expensive. It is hard for us to give you solid advice with such limited data.

How large is your HOA/COA?

What type of roads do you have? Blacktop Oyster shells or just dirt?

Does your board have a reserve account already setup and in place that has funds in it?

Reserve Studies range from $1000 to $5000 and should be done at a minimum every 3 years. In your cases with no amenities yours should be on the lower side IMO.

Expanding on what Mark and Michael said:

Your Google search may have pulled up out of state reserve study specialists, but that doesn't mean they don't have local people - call and ask them. If you have a property manager, he or she may also know of a few people.

It sounds like your community is new to reserve studies, so you'll want someone who's willing to take the time to explain what they are, how they're prepared, the information you'll receive and how to use it 8n preparing budgets. Since you have hew board members, you may want to check out the CAI website and look at their educational materials on a variety of HOA topics, including reserves. They're not expensive and there may be on demand webinars all of you can watch.

The educational materials can give you a general idea of what youll need, but you should get at least three estimates. I understand about costs, but it's best to get as much as possible the first time around so you can build from there. Of course, you'll need to ask for references and check them - HOAs in your area may also have suggestions for vendors.

Once the study is done, you should hold a special homeowners meeting where everyone can hear about the findings from the specialist and ask questions. That could take pressure off the board because people will see this is ultimately about ensuring the community is maintained properly, and that can control costs in the long run. Good luck!

MarqA,

The first thing to be done is properly identify what elements are to be included in a reserve study.

Don't forget the little things: Mailboxes, signage, playgrounds, sidewalks, etc.

We did our first reserve study ourselves. It wasn't great but it was darn good and better than nothing.
We utilized historical data within the Association and most companies were willing to assist with ballpark pricing (cost to mill & pave road, seal coat, painting of curbs, etc.).

We updated that for five years and then hired a reserve specialist to do our next one.

Simply do an internet search and ask for a quote.
I've attached a copy of the sanitized request for quote of my last association.
Hopefully, it will help.

If you want additional resources, contact me [email protected] (they are too large of files to attach).

Kerry,
Great post and I agree with you. Marq you do not know what you have not learned about. A reserve analyst with see things you or your board has never considered and if a surprise is uncovered a professional told you verses your board members trying to tell your community what they may not want to hear. This could mean a dues increase is needed our must be done asap. If it turns out to be good news that will be a relief. Many smaller HOAs have boards that keep their eyes closed and hope it doesn't happen on their watch. This is not a plan.

AND....all 3 of the different RS's we've had hold
Town Halls, non charged any fee.

Dean,
Sorry I am from the South.

Kerry said "CA requires an onsite reserve analyst vist every 3 years, and an update every year thereafter. The specialist places on the updated study, comments that have been replaced and "resets" their estimate remaining lifespan. For this update, the specialist will speak with your HOA's engineer (in our case) or community manager, or Board member who's been assigned, perhaps to keep track of your reserves, perhaps your treasurer. Our Board purchased a package deal for three years of such."

No, California does not require an onsite "reserve analyst." California requires a reserve study every three years with a reasonably diligent physical inspection. This can be done by board members/association members with assistance from anyone they wish to hire like a paving contractor or accountant. The study is not required to be done by a reserve analyst. Our last board hired a reserve analyst with offices nationwide and they did a terrible job. It's a racket.

A reserve study without consulting a reserve specialist does not make a bad study.

There is a ton of information available about reserve studies compared to 20 years ago and someone who takes the time, does their research and talks with contractors can develop a fairly good study. It may be an incomplete and/or inaccurate study.

However, any reserve study is better than no reserve study.

NOTE: If you have a lot of common elements, live in a condominium development or own buildings, it is best to consult with a specialist. It might be a reserve specialist or a structural engineer.

The point is California does not require a reserve analyst to do the study.

Yes, Marg, your HOA's reserves components and few and non-somplkext. You should be abet to do your own study.

Yes,Terri, true. CA doesn't require any kind of credentialed person to craft a reserve study. I don't know why her HOA hired a "reserves analyst* when they only have roads as a reserve component.

Calif also requires a follow up study every year. Generally. this is just an update: what component has been repaired or replaced this year, the brand name, etc. of the, let's say, new replacement nd th provider resets the estimated remaining life & cost to replace.

Occasionally, as is happening right now to my HOA, an agency with a authority, say, the "state," declares tha all window washing equipment for high rises on their roofs must have certain new safety features. UT.... these new features do not "fit"our 23 y.o.Spider equipment so it must be entirely replaced at considerable cost **. Meanwhile, our windows haven't been washed in over year. Can you hear residents' shrieks ???? Beautiful Bay & ocean views a huge smudge.

Structual engineers aren't ' used for the reserve studies of high rises in my HOA or surrounding ones.** Most components are the same as in SFH HOAs: roofs, walking paths, fencing, exterior lighting,. Stepping up a notch: yes,pools, gyms, party rooms or clubhouses with kitchen. The big difference is the very large number of mechanical components,: pumps, motors fire suppression generator, sump pump; many valves, elevators; 30 interior common area Heat pumps (HVAC ), etc. .

The study provider reads the HOA's Maintenance Manual, which tells them the estimated life and the frequencies and ways in which preventative maitenance (PM) must be done to keep the component in top condition. Th provider often contacts the man. rep. to learn if any changes have occurred the require the HOA to update the component. An HOA staffer, vendor or board member keep a log about frequeny & work done on X, which provider reviews. If NOY maintained proper the pride WILL note that in thier remarks ao that comment an advice better maintenance or even replacement is there's no record of correct care.

So..... it's' way more the a"math."

The BEST resource about reserve studies, is of course, CAI's (calionline.org?) 2023 Reserves Standards prepared by experts in the field, i.e, RS' and some PEs. Sorry I don't have a better citation for readers.

In a nutshell, the more complex an HOA's common area items that are required to be in a study, the more likely the HOA should hire a certified RS.

* I. believe" there is a designation "reserves analyst " but I know nothing about them.
**Various parts of it had been replaced over these years
*** In response to Surfside, CAlif. now requires professional inspection of "elevators structures" state ing, I think, in '23(?) n done ev very 9 years. that contain wood, e.g., balconies, walls ways. stairwells. I imagine a sub set of structure engineers or similar have emerged who only do this type of inspection. Our and nearby high rise are all concrete & step, so I don't know muc about the new requirement.