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The Reserve Study
The reserve study provides a long-term funding plan necessary to
maintain, repair,
replace or restore major common area components (such as asphalt
pavement, exterior
coat/paint/stain, and roofs) in the future. Ideally, all future reserve
item
expenditures will be covered by those funds currently set aside by
association management
as reserves. The plan involves the following two elements: 
A Strategic Reserves reserve
study conveys to owners and potential buyers a more accurate and
complete picture of the
association's financial strength and market value. The reserve study
discloses to
buyers, lenders, and others a long-term funding plan specifically
designed to offset
future reserve expenditures. The long-term funding plan requires an
annual review
and update to allow for the necessary adjustments.
Strategic Reserves strongly
recommends that a Reserve Study Update (with site-visit) be performed at
least every three
(3) years at your community association to ensure the- Security
of a successful plan!
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