What are the Different Levels of Reserve Studies?

Level I: Full Reserve Study. This is the most labor intensive Reserve Study. It includes both a Physical and Financial Analysis. The Component Inventory list and current component Condition Assessments with Life and Valuation estimates are determined from a visual on-site inspection. This information is used to conduct the Financial Analysis which includes the current Fund Status and our recommended Funding Plan. A Full Reserve Study is recommended when a previous Reserve Study is not available, or a substantial time has lapsed since the last study (10-15 years) or there are concerns with an existing Reserve Studies Component Inventory or measurements.


Level II: Update with Visual Site Visit. This report updates both the Physical Analysis and Financial Analysis of an existing report. A site inspection is conducted to verify and/or make adjustments to the existing Component List, Condition Assessments, Useful Life and component Valuation Estimates. The Financial Analysis is also updated, including the current Fund Status and recommended Funding Plan. A Level II Report is recommended at least every three years, before and after major projects and as required by state law.


Level III: Update with No Visual Site Visit. This report updates the Financial Analysis only. The current Fund Status and Funding Plan is updated using research conducted with Board members, vendors, association managers and information contained within a prior Reserve Study. A level 3 report is recommended to review, adjust and verify that the existing funding plan is accurate and suitable for current economic conditions.