The document discusses when and why a reserve study for a community association should be updated. It notes that a reserve study is useful for around 5 years, and should be updated when the condition of building components changes, or the financial status of the association changes significantly. The type of reserve study needed depends on how long it has been since the last study and the extent of any changes. Level I studies provide the most comprehensive new data, while Level II and III focus only on changes. Keeping the reserve study and funding plan up to date helps the association better plan its long-term maintenance and replacement costs.

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Why and When to Update a Reserve Study

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Agenda
• Introductions and participation guidelines 5 minutes
• Presentation objectives and discussion 35 minutes
• Audience participation and Q&A 10 minutes
• Moderator – Martin Smith, Director ofTraining
• Expert – David Rothbart, Director of Reserve Study Operations

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Bio – David Rothbart, RS
• David Rothbart, RS
Director of Reserve Study Operations
CAI Certified Reserve Specialist
NSEC Certified Environmental Consultant
State ofVirginia Certified Inspector
Nevada Licensed Reserve Specialist
Tremendous experience planning and completing studies

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Webinar Control Panel
• Questions encouraged

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About USI Commercial
• 25 years of service
• National coverage
• Industry leading technology
• Local employee service delivery
• Skilled local employee Reserve Study Specialists
• Centralized and standardized reporting
• Professional engineering
• Other services

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Objectives
• When is it time for the association to update a Reserve Study
• How do the component and financial status dictate the need for update
• What is the best type of study needed to satisfy association needs

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Considering the Reserve Study Update
• Decision to Update
• Establish the purpose and benefit
• Review Proposals
• Commit to Update

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Component and Financial Condition of the Association
• Condition of Components within the community change
• Condition of the Financials change
• Consider the quality of the previous study performed

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Level of Service by the Reserve Analyst
• Site visits and packaged study comply with CAI Standards
• Duration in years between studies
• Specific component and financial status changes

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KeepingYour Reserve Study Current
• Funding Studies are an essential part of property management
• Useful life of a Reserve Study is no more than 5 years
• Circumstances can and will influence when a study should be
updated

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What Level Reserve Study to Order
• Level l contained high quality data
• Level ll study if Level l performed within (5) years
• Level lll study performed for minor component or financial changes
• Level lll study performed only if USI performed Level l

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Previously Reported Long Lived Items
• Long lived items have a useful life that will exceed the time period of study
• Examples include concrete walkways, masonry retaining walls
• Accurate data should be presented to the Reserve Analyst

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Changes in the Community Condition
• Component age and financial status warrant Reserve Study updates
• Changes in component repair or replacement costs
• Changes in the association board personnel

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Changes in the Community Financial Condition
• FinancialCondition changes
• Reserve Studies reflect conditions at the time of the study

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Changing the Funding Method
USI Commercial uses the Full Funding or Component Funded Method in our
Reserve Study Reports.
• More flexibility and latitude to help with financial management
• Full Funding is viewed as the most conservative approach
• Changing the Funding Method is not recommended

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OtherTypes of Funding Methods
•Threshold Funding
•Baseline Funding
•Statutory Funding

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Conclusion
As you can see, the decision to update a Reserve Study is
dependent on the component life valuation along with escalating or
decreasing costs of repair or replacement, and changes in the
financial status of the community association.

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Let us help you
• By reviewing your reserve study needs
• By providing a proposal
• www.usicommercial.com/reserve-study
• By providing presentations

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Contact Info forYour Reserve Study Needs
reserve@usicommercial.com
888.225.3755