A reserve fund study (also known as contingency fund) is a financial analysis of a multi-residential dwellings current and forecasted reserve fund. This study ensures that the annual contributions will allow for future generations of co-owners to not be the only ones to endure the financial burden of the replacement of major building components and code compliances.
Our opinion on the annual contributions to the reserve fund is based on the estimated life expectancies of common components and the effects of interest rates and inflation. Because of the number of factors that can influence the annual contribution required, we recommend that the study of contingency funds to be reviewed annually and updated at least every five (5) years.
The expected cost and schedule of work that will be required is evaluated over the next 20 years.