What is a Reserve Study?
A Reserve Study is a document created to estimate/forecast future common area expenses of a condominium association. It is a management tool for use by the Board of Directors of the Condominium Association to plan for the maintenance and replacement of common areas. It is required in Tennessee by TCA § 66-27-403 (g)(2).
"Reserve study" means an analysis, prepared in conformity with the latest edition of the Reserve Study Standards published by the Community Associations Institute, or similar standards by another nationally recognized organization, by a reserve specialist who is credentialed through the Community Associations Institute or a similarly recognized organization, or a licensed engineer or architect, performed or updated within the last five {S)years, of the remaining useful life and the estimated cost to replace each separate system and component of the common elements, the purpose of which is to inform association members and the association's board of the amount that should be maintained from year to year in a fully funded repair and replacement reserve to minimize the need for special assessments; TCA § 66-27-203(1)(21).
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Common areas that a study might include:
Roof
Our qualified team safely inspects every angle and surface area of the roof system(s) installed on the property. Beginning with our professional drone pilot, we capture video and photographic data to determine the current condition of the roof and the materials that are currently installed. This enables us to evaluate the remaining useful life and estimate the expected date and cost of replacement. We also review historic information provided by the HOA Board in order to collect the most comprehensive data for use in our Reserve Study Report.
Paved Parking Areas & Private Drives
Here our qualified team will inspect the entire surface and square footage of all paved areas. This includes video and photographic imaging which will be enlarged to provide a more in-depth look and establish the current condition of the surfaces. This will result in a grade being assigned (i.e. A,B,C,D,F) to project the most accurate state of repair and, when combined with data and information provided by the HOA Board, we can then determine an accurate remaining useful life and establish a maintenance timeline.
HVAC
Depending on the type of HVAC system, if it is considered Common Area, our qualified team will do a comprehensive study of the age, efficiency, estimated remaining useful life, and maintenance schedule, along with any information supplied by the HOA Board (i.e. information which may have been provided by a professional HVAC contractor which would be beneficial). Based on the information gathered from onsite inspection, our Reserve Study will provide insight and estimates as to the cost and date for repair, refurbishment or replacement of the HVAC system(s).
Who needs a Reserve Study?
All Condominium Boards of Directors of Condominium Owner Associations in Tennessee who manage more than $ 10,000 in value of common areas (who have not had a Reserve Study prepared since 2020) are required to have a Reserve Study completed by January 1, 2025. TCA § 66-27-403(g)(2). Although now required, this Study is a good management tool that should enable the Board to make informed recommendations to the owners of the individual units regarding future maintenance and replacement costs. It should allow the Board to provide funding for estimated common area future costs without the necessity for large, lump sum assessments of the owners of the units. TCA § 66-27-203.
How do I get started?
1
Review the Law
Read and review the newly amended Tennessee State Law TCA § 66-27-203, amendment SB 863.
2
Submit an RFP
(request for proposal)
Complete the RFP on our website by clicking the button in the section below.
3
Speak with our Team
Await our prompt response within 2 business days and we will take it from there.
Frequently Asked Questions
How long will it be before we receive our Completed Reserve Study?
The report is quite extensive and requires the compilation of a great deal of information. We therefore tell our clients to expect the report in approximately sixty (60) days.
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How will this benefit the individual condominium owners?
A completed Reserve Study helps to maintain property values, reduce the likelihood of large unforeseen assessments, establishes a fund that, as it grows, will be used to pay the cost of maintaining common areas, to name a few.
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What does a Reserve Study Cover?
A Reserve Study is a document created to estimate/forecast future common area expenses of a condominium association. It is a management tool for use by the Board of Directors of the Condominium Association to plan for the maintenance and replacement of common areas. It is required in Tennessee by TCA § 66-27-403 (g)(2).
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How often does a Reserve Study need to be conducted?
Every five (5) years.
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Does the HOA Board need to provide any additional information to help with the Reserve Study?
Yes, we will need a copy of the Covenants, Restrictions and Bylaws.
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Does Reserve Studies Tennessee, LLC keep Client information confidential?
Yes. We operate under strict ethical and professional standards and maintain strict confidentiality with regard to our clients' information.