Reserve study
A professional inspection and forecast that tells an HOA how much to save for future repairs.
A reserve study is a report — usually prepared by a specialist every few years — that inventories all of an association's major shared components, estimates how many years of life each has left and what it will cost to replace, and recommends how much the [reserve fund](/glossary/reserve-fund) should hold and how fast it should grow. It's the financial health checkup for a community — essentially a professionalized [sinking fund](/glossary/sinking-fund) plan for shared property, sized to each component's [service life](/glossary/service-life). A current, fully funded reserve study is a green flag for buyers; a stale or 'percent-funded: low' one is a warning that [special assessments](/glossary/special-assessment) are likely. Many states now require associations to keep one current.