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:
“I envy neither the heart nor the head of any legislator who has been born to an inheritance of privileges, who has behind him ages of education, dominion, civilization, and Christianity, if he stands opposed to the passage of a national education bill, whose purpose is to secure education to the children of those who were born under the shadow of institutions which made it a crime to read.”
—Frances Ellen Watkins Harper (1825–1911)
“The purpose of population is not ultimately peopling earth. It is to fill heaven.”
—Graham D. Leonard (b. 1921)
“How still the evening is,
As hushed on purpose to grace harmony!”
—William Shakespeare (1564–1616)