From Paper to Action: Making Your HOA Reserve Study a Living Tool
Your HOA has a reserve study—great! But is it actually being used, or is it buried in a filing cabinet?
Too often, reserve studies get treated like one-time reports instead of the powerful, ongoing planning tools they’re meant to be. By using your reserve study proactively, your community can avoid costly surprises, strengthen financial health, and stay ahead of repairs.
Here’s how to ensure your reserve study keeps working for you long after it’s delivered.
Make It a Living Document
Some states have laws that require HOAs to update their reserve study every few years, while others only make it a recommendation. But waiting that long (or worse yet - not completing one) can put your community at huge risks!
Building materials wear down, prices change, and repair schedules shift. Reviewing your reserve study annually ensures it stays relevant and reflects your most current conditions. It’s also a chance to compare projected timelines with actual repair history and adjust accordingly.
Adjust Your Budget When Necessary
If your study shows a funding gap, don’t ignore it.
That gap won’t close on its own, and delaying action often results in special assessments and financial stress later.
Use your reserve study to guide your annual budgeting decisions. It’s not just about having a plan; it’s about aligning your funding strategy with real-world needs before you're forced into reactive measures.
Don’t Use Reserve Funds for Day-to-Day Expenses
Using reserve funds to cover operational shortfalls might seem like a quick fix, but it’s a very slippery slope that can create a situation where you don’t have funds for critical improvements.
Some states have laws, such as California Civil Code §5510, which restrict this practice for good reason.
Raiding the reserve account today could leave your community unprepared when it’s time for that roof replacement or structural repair.
Protect your reserves by keeping them separate, sacred, and strictly for long-term needs.
Be Transparent About Dues Increases
Nobody loves dues increases, yet they’re a reality of responsible community management. It’s just simple math - as the costs of services and materials increase, so must your dues!
Your reserve study can help homeowners understand why increases are needed and how they prevent more painful financial scenarios later.
Proactive, transparent communication builds trust, reduces pushback, and makes it easier to keep funding on track. Use your study to tell the story of long-term value, not just short-term costs.
Don’t Go It Alone
Even with the best reserve study in hand, navigating financial planning and major repairs can be complex. That’s why it pays to have trusted partners in your corner.
Community managers, reserve specialists, and financial advisors bring the insight, objectivity, and experience your board needs to make informed decisions and stay ahead of costly surprises.
Remember, your reserve study is more than just a report - it’s a roadmap.
When you treat it as a living tool, it helps your association maintain financial health, avoid unnecessary stress, and plan confidently for the future.
Don’t let it sit unused. It’s time to dust it off, dig in, and start making it count.
👉 Ready to talk about how to get the most out of your reserve planning? Contact us today! We’re here to help you build a stronger, more stable community.