Reserve Study Plus
The funding plan, with a plan of action.
A reserve study is the association's funding plan for its big projects. We inspect every building, document the age and condition of everything the association maintains, and confirm what each item will cost to replace. Then we build a 30 year plan for what to set aside each year. Every TruPoint study comes with an Action Plan. The board gets photos and the condition of each item, the recommended fix, when to do it, and a budget range. We call it Reserve Study Plus. The people pricing your roof have installed the roof.
Minnesota law has associations recheck the adequacy of their reserves at least every third year. Minn. Stat. 515B.3-1141.
What a study gives you
- A financial plan for big projects when they come due.
- Fewer special assessments and loans.
- A clear picture for owners.
- Peace of mind, without financial surprises.
- A more attractive community to prospective buyers.
Study types
- Level I, Full Study. For a first study, or when the last one is out of date. We inspect every building, measure and document everything the association maintains, and build the 30 year plan from scratch.
- Level II, Update With a Site Visit. Every third year between full studies. We inspect the property again, check the condition of each item, and update costs, remaining life, and the funding plan.
- Level III, Update Without a Site Visit. For the years in between. We update the study from the office using your records: current costs, completed projects, and the reserve balance.
How we build your Reserve Study
The property
Review existing community documents. Thoroughly inspect all buildings. Document age and condition.
The plan
Confirm cost of replacement for each component. Arrange multiple funding scenarios. Provide the full reserve plan and Action Plan to the board.
The board
Host a meeting to review the plan with the board. Revise the plan based on the review. Deliver the final packet.
After the study
Need help with what comes next? We're ready when the board is.
TruPoint is a member of the Community Associations Institute, and Matt Hardinger serves on its board. Every reserve study is prepared to CAI's National Reserve Study Standards.
Questions boards ask
Does Minnesota require a reserve study?
Minnesota law requires associations to budget for reserves, hold them separately, and recheck their adequacy at least every third year. A study is how a board shows the recheck was done, and how the treasurer takes it to the budget. The statute for reference: Minn. Stat. 515B.3-1141.
Does an engineer have to sign it?
TruPoint prepares the study to CAI's National Reserve Study Standards. When something needs more than a visual check, like a structural concern, we bring in a licensed engineer and note it in the study. The statute for reference: Minn. Stat. 515B.3-1141.
How often should we update it?
A full study on the three year cycle the law sets, with an update between when costs move. The update works on any existing study, ours or anyone's.
What is the difference between a reserve study and an Action Plan?
The reserve study is the funding plan. The Action Plan is the work plan: every component's condition, when it is due, and repair or replace options with cost ranges. Every TruPoint reserve study is a Reserve Study Plus, so the board gets both from one site walk.
Is the Initial Property Review really free?
Yes. Send us the community and the hot button items, and we present what fits at your board meeting and put it in writing.
Quoted after the free Initial Property Review, by community size. The study can be paid from the reserves it plans, and the treasurer takes it straight to the budget. What it costs.
Put us on your next agenda for fifteen minutes.
Send us the two or three things keeping the board up at night. We read them before the meeting and present what fits. The review is free.