What is an HOA reserve study?
An HOA reserve study is a long-term plan for repairing and replacing the community’s big-ticket items, like roofs, roads, pools, and fences. It lists each component, what it will cost to replace, and how many years it has left.
From that, the study shows how well funded your reserves are today and how much the association should set aside each year. Communities that follow a reserve study rarely need surprise special assessments.
What to include
- Every major component the association maintains
- Current replacement cost for each one
- Useful life and remaining life in years
- The fully funded balance for each component
- The current reserve balance and percent funded
- The annual and monthly contribution needed
Template preview
Fill in the [highlighted] fields| Current reserve balance | $85,000 | |||||
| Annual inflation assumption | 0.03 | 3% = 0.03 (for your own projections) | ||||
| Component | Notes | Replacement cost | Useful life | Remaining life | Fully funded balance | Annual contribution |
|---|---|---|---|---|---|---|
| Asphalt paving (roads, parking) | Full mill & overlay | $120,000 | 25 | 9 | $76,800 | $4,800 |
| Asphalt seal coat & striping | $18,000 | 5 | 2 | $10,800 | $3,600 | |
| Clubhouse roof | Architectural shingles | $45,000 | 25 | 12 | $23,400 | $1,800 |
| Exterior paint (clubhouse, walls) | $60,000 | 10 | 3 | $42,000 | $6,000 | |
| Pool resurfacing | Plaster | $30,000 | 12 | 4 | $20,000 | $2,500 |
| Pool pumps, heater & equipment | $12,000 | 10 | 6 | $4,800 | $1,200 | |
| Perimeter fencing | $25,000 | 20 | 11 | $11,250 | $1,250 | |
| Entry gate & access system | $20,000 | 15 | 7 | $10,667 | $1,333 | |
| Playground equipment | $35,000 | 20 | 14 | $10,500 | $1,750 | |
| Clubhouse HVAC | $14,000 | 15 | 5 | $9,333 | $933 | |
| Mailbox kiosks | $9,000 | 20 | 10 | $4,500 | $450 | |
| Landscape & street lighting | $8,000 | 15 | 8 | $3,733 | $533 | |
| Totals | $396,000 | $227,783 | $26,150 | |||
| Percent funded | 37% | Current balance ÷ fully funded balance | ||||
| Recommended monthly reserve contribution | $2,179 | Straight-line: replacement cost ÷ useful life |
Tips for using this template
Roads, roofs, pools, and paint usually make up most of the total. Get those right first.
Ask vendors for replacement estimates instead of guessing. Update them every year or two.
Adjust remaining life and costs each year, and plan for a professional study every three to five years.
Carry the recommended contribution straight into your annual budget’s reserve line.
Frequently asked questions
What does percent funded mean?
It compares your current reserve balance to the amount you would have if you had saved for every component on schedule. Many advisors consider 70% or higher to be strong.
How often should an HOA do a reserve study?
A professional study every three to five years with yearly updates is common. Some states require a study on a set schedule.
Is this the same as a professional reserve study?
No. This worksheet helps you plan and understand the numbers. A credentialed reserve specialist inspects components and is often required by law or lenders.