Frequently Asked Questions

 A Reserve Study is a budget planning tool, used by Altitude reserves to create an effective  funding plan for anticipated common area expenditures over a period of time (normally 30  years). The Reserve Study consists of two parts, a physical analysis, and a financial analysis.

The physical analysis initially entails a site inspection which is a limited visual inspection of the  association’s common area components. The Study generally does not include invasive or  destructive testing. The purpose of the physical analysis is to identify common area  components, evaluate their condition, determine useful life, remaining useful life, and  estimate the major repair or replacement cost. 

 The financial analysis establishes an appropriate annual reserve contribution rate. 

 Timing requirements for reserve studies differ with varying state legislation, but every  association that has common area components should have a reserve study prepared on a  periodic basis. We believe that the reserve study should be used to assist a board in making  budgetary decisions for the coming financial years. This means that the reserve study should  be prepared a couple of months in advance of the board meeting (timing will vary  depending on the association’s fiscal year). 

 That depends on the complexity, size and location of an association and is a function of the  time taken to prepare the report. Reserve study options and associated pricing can be  provided on request. 

Determination of what constitutes a reserve component is dependent on a number of  factors. Unless explicitly determined otherwise, a four-part test is used to distinguish a reserve  expense from that of an operational or maintenance expense.