Budget preparation time is upon us!
We strongly encourage association managers and Boards to review and ensure that their capital reserve study is accurate and up to date each year around this time. This is one of the most important decisions a Board will make for the future of their association. It is an easy and effective way to ensure your community’s capital replacement items are being properly funded with minimal impact on individual homeowners.
With the recent update to the Capital Reserve Study Standards published by the Community Associations Institute, and the impact of inflation and supply chain issues over the past few years (in some cases resulting in costs up to 50% higher for certain components), it is even more critical to have an updated reserve study to ensure the financial health of your community.
We strongly recommend updating your Capital Reserve Study every 3 years.
Regular updates help:
- Preserve or boost property values through timely repairs and upkeep
- Improve project planning and efficiency, while minimizing disruption
- Prevent large or unexpected assessments that lead to resident dissatisfaction
The Falcon Group has prepared thousands of Capital Reserve Studies. Each study we perform is a customized analysis, prepared in coordination with our Reserve Specialist (RS) and our client, and is based on a “real-world” methodology for each item with regard to:
- Inspection
- Evaluation for repair or replacement
- Evaluation of anticipated "Useful Life"
- Integration into a repair or replacement plan and budget
All of our Capital Reserve Studies are prepared under the direction of a Reserve Specialist (RS) and/or a Professional Reserve Analyst (PRA).
