Purpose
The purpose of the Reserve Study is to give those overseeing the maintenance of the property a better idea of what major expenses to expect and an educated estimate of when these expenses will occur. With this knowledge, the Homeowner's Association Board or manager can create a budget so association members will make their fair share of Reserve contributions, designed to offset the slow but steady ongoing Reserve Component deterioration at the association. In addition, the Reserve Study provides important annual disclosures to association members (and prospective buyers) about the condition of common area components, and the level of preparedness (strength) of the Reserve Fund (typically measured in terms of Percent Funded). A Reserve Study is a roadmap that allows decisions to be made which will be efficient and effective for the long term.
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Famous quotes containing the word purpose:
“For the purpose of knowledge, one must know how to use that inner current that draws us to a thing, and then the one that, after a time, draws us away from it.”
—Friedrich Nietzsche (1844–1900)
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—William Howard Taft (1857–1930)