Full Reserve Study
A Full reserve study is the most complete and comprehensive reserve study service available. This is necessary if this is the first time the community is using GeoReserves as its reserve provider. GeoReserves will do the following:
Conduct a complete and thorough Physical Analysis in which we:
- Review the CC&Rs and any applicable By-Laws or other documents detailing the common area and limited-common area elements.
- Use satellite imagery and other GIS software to outline and map all areas of the common area the association is responsible to maintain such as landscaping, asphalt, roofs, fencing, concrete, etc.
- Conduct the on-site analysis, or site inspection, in which inventories are taken such as the number of streetlights, park items, and pool furniture. As well as any information related to each component such as the manufacturer, model number, and a general visual estimate of condition.
- Reserve study analysts are not building inspectors nor does a reserve study scope of work include any type of detailed inspection of parts or other test of performance, only a general visual observation is done.
- Contact the manager or board of directors for any additional information or questions that may arise during this entire process. GeoReserves may also reach out to contractors or other agents that have worked with the association for their expert advice.
- This data collected will be used to develop the Component List, which summarize the results of the Physical Analysis. The Component List is a table showing the name of each component, its total useful life, remaining useful life, and cost estimate.
Once the Physical Analysis is complete, the second part of the reserve study is the Financial Analysis:
- Using the Component List matrix, GeoReserves prepares a projection of the association’s 100% “Fully Funded” level at each year for 30 years.
- Develop a funding plan of regular contributions that will stabilize the reserve fund at this 100% level over the course of the 30 years.
- Develop an alternative funding plan of regular contributions that will make sure the community never has its reserve account drop below $0, this is a Baseline Funding Plan.
The first draft of the reserve study is now ready to be sent. From here:
- The manager and board of directors are welcome to review the first draft and contact GeoReserves with any questions or potential revisions.
- All questions and feedback are welcome. These reports are designed to make any mistakes easy to spot and correct.
- Two rounds of revisions are included in the scope of work to make sure you are confident in the final product.
