Reserve Studies and Capital Improvement Plans

Reserve Studies

Borne Consulting specializes in conducting reserve studies.  The firm has completed hundreds of reserve studies for various communities across Colorado.  We adhere to top-best management practices and conform to industry standards when executing these studies. Additionally, we educate each community on the purpose and overall objectives of the reserve study. We utilize such resources as the Community Association Institute (CAI) and their Best Practices for Reserve Studies to help communities develop solid funding strategies.

Property Condition Assessment

A property condition assessment (PCA) is sometimes confused with a reserve study, but they are not the same thing. A PCA is usually performed before buying or selling a building as part of the buyer’s due diligence. This assessment can warn the parties about ongoing maintenance needs and future major repairs or replacements. However, a property condition assessment does not consider a reserve account or do the reserve balance forecasting that is needed for long term capital expenses and corresponding reserve contributions. The PCA does not include a funding plan that is necessary to cover the yearly expenses that the building or project may face. 

Capital Improvement Plans (CIP)

Capital improvement plans are typically performed for larger municipalities and companies that fund their projects on an annual basis, as their yearly budgets tend to be big, and the entities tend to be more concerned with covering yearly costs vs saving up for a long-term reserve fund. Larger municipalities often fall short of the higher funding levels required for smaller homeowner associations as typically analyzed in a reserve study.