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Understanding the Terms, the Funding, and Why They Matter. This article first appeared in the Summer 2024 Edition of The Communicator Magazine. 

By Zer Iyer, Esq.

RESERVE STUDY. The term is common in the HOA lexicon. Managers know their associations need them. Board members know they need them. But what is a reserve study, really, and why are they getting so much attention now? Well, it all comes down to – what else – money. Due to the number of unanticipated expenses that associations are now facing, (think: aging communities, increased insurance premiums, inflation impacting just about everything), financial planning for communities has never been more important, and reserve studies are the most effective financial planning tool associations have. Understanding what reserve studies are, how they operate, and the role they should play in an association’s budget is no longer something that only experienced or senior community managers need to...