With over half a decade of combined experience in working with the Bureau of Real Estate’s investigators, California Builder Services has the experience to accurately and efficiently complete reserve studies on all types and sizes of developments. We are acutely experienced in the application and use of reserve studies, as we have created thousands of homeowner association budgets, all of which have been reviewed and approved by the Bureau of Real Estate’s Investigators.
We know how important it is to have a reserve study prepared by a group who is so familiar with the requirements of the Bureau of Real Estate.
A reserve study is a capital budget planning tool used by homeowner associations, condo associations, developers, apartment building managers, hotel and commercial property owners. It measures the current status of the association’s reserve accounts in comparison to the anticipated expenditures for maintenance or repair of the common areas and maintenance areas. This study shows a detailed list of all assets and items to be repaired and maintained along with a spending plan for the development over the next 30 years, and creates a funding plan to meet the maintenance obligations. The Reserve Study is also a valuable tool when working with real estate professionals and lending institutions for potential homeowners, as it is often requested to reveal the strength of the Reserve Fund prior to purchasing a property. A well-documented and strongly funded Reserve Fund increases property values and marketability.
For California property owners, the Davis Stirling Common Interest Development Act sets forth the requirements for budgets and the information that must be included in a reserve study. More specifically, Civil Code section 5550 requires a reserve study be completed at least every three years, and reviewed annually. For this reason, many associations will have annual financial analysis updates to the Study, to reflect the changing financial information of the HOA without a site inspection.