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:
“If God bestowed immortality on every man then when he made him, and he made many to whom he never purposed to give his saving grace, what did his Lordship think that God gave any man immortality with purpose only to make him capable of immortal torments? It is a hard saying, and I think cannot piously be believed. I am sure it can never be proved by the canonical Scripture.”
—Thomas Hobbes (1579–1688)
“In using the strong hand, as now compelled to do, the government has a difficult duty to perform. At the very best, it will by turns do both too little and too much. It can properly have no motive of revenge, no purpose to punish merely for punishment’s sake. While we must, by all available means, prevent the overthrow of the government, we should avoid planting and cultivating too many thorns in the bosom of society.”
—Abraham Lincoln (1809–1865)
“Productive collaborations between family and school, therefore, will demand that parents and teachers recognize the critical importance of each other’s participation in the life of the child. This mutuality of knowledge, understanding, and empathy comes not only with a recognition of the child as the central purpose for the collaboration but also with a recognition of the need to maintain roles and relationships with children that are comprehensive, dynamic, and differentiated.”
—Sara Lawrence Lightfoot (20th century)