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.
Read more about this topic: Reserve Study
Famous quotes containing the word purpose:
“In considering the policy to be adopted for suppressing the insurrection, I have been anxious and careful that the inevitable conflict for this purpose shall not degenerate into a violent and remorseless revolutionary struggle.”
—Abraham Lincoln (1809–1865)
“Whoever considers morality the main objective of human existence, seems to me like a person who defines the purpose of a clock as not going wrong. The first objective for a clock, is, however, that it does run; not going wrong is an additional regulative function. If not a watch’s greatest accomplishment were not going wrong, unwound watches might be the best.”
—Franz Grillparzer (1791–1872)
“Science and art, or by the same token, poetry and prose differ from one another like a journey and an excursion. The purpose of the journey is its goal, the purpose of an excursion is the process.”
—Franz Grillparzer (1791–1872)