CAPITAL RESERVE FUND STUDY
Every proactive community should have a properly funded reserve account to provide funding for replacement of their infrastructure.
We work with your Association and Management Company to create a study that aids the Community with their future planning.
BUSTAMANTE ENGINEERS provides the necessary service of Reserve Studies for Community Associations from Philadelphia, Bucks, Chester, Delaware, and Montgomery Counties to New Jersey and Delaware. A Reserve Study is an important financial tool that helps the community prepare and plan for their future capital replacement projects. By assessing the physical condition of the common area components and pricing out replacements, a monthly budget can be created to pay for future replacement projects. Whether a 20-story high-rise building in the city or a 200-unit residential community in the suburbs, financial preparation is an integral element in the life of the community. Capital improvements help keep a community looking fresh and prevent deterioration. We will work with your Association to create a study that is tailored to the needs of your community and will continue to work with the Association to answer questions years after the study has been completed.
Each Capital Reserve Fund Study will Include Three Phases:
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![Physical Analysis]()
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![Reserve Analysis]()
2. Reserve Analysis:
ButtonInput the current financial balances and contributions, determine a reasonable rate of return on investments and rate of inflation, applying either a 20 or 30 year basis period, then quantify and estimate the components cost, remaining useful and expected lives, all into one spreadsheet. We offer multiple alternatives as our analysis program has flexibility to meet the individual needs of any association..
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![Meeting Participation]()
Two Levels of Capital Reserve Studies:
Comprehensive Study:
Update Study:
After a site visit, the previous Reserve Study will be updated to reflect the current balance of the reserve fund and common area components. New funding options may need to be provided based on the current day status of the site.
CAI Reserve Specialist
With every project, whether small or large, old or new, a licensed engineer will be in charge of the capital reserve fund study. The principal engineer retains a “Reserve Specialist” designation from the Community Association Institute. The Reserve Specialist designation is awarded to qualified reserve specialists who, through years of specialized experience, can help ensure that community associations prepare their reserve budget as accurately as possible. RS designees must meet comprehensive requirements. BUSTAMANTE ENGINEERS also supports the CAI over the years by serving on boards, volunteering, and sponsoring events. Over the last nine years we have been a Platinum Sponsor giving support for many events CAI plans. This commitment is not only to property managers but also the Board of Directors who run their communities. We are proud to be a member of CAI.
