HOA reserve study questions

A 30-year schedule of the things the association will have to fix or renew, with how long each item has left and what it will cost, plus a plan for how much to put aside each year so the money is there when it is needed.

A full study builds the component list from scratch with a site visit. An update starts from an existing study and refreshes condition, costs and the balance, with or without a visit. The CAI Reserve Study Standards call these Levels I, II and III.

The site visit is usually a few hours to a day. Drafts often arrive within a few weeks, longer in the October to December budget rush. Ask before you sign.

Arizona sets none. Ask whose name will sign the report, which designation they hold (the RS comes from CAI, the PRA from APRA), and how many communities like yours they have studied.

The reserve balance divided by the amount that would be in the account if each component had been paid for steadily as it wore out. It is a snapshot of where you stand, not a target by itself.

State law sets none. Many boards aim to stay well clear of a balance that could run out in any year of the 30-year plan, and move toward full funding over time. Ask the provider to show more than one plan so the board can compare.

Only if your documents allow it, and it is usually the most painful option for owners. Planned communities also face a cap on yearly assessment increases (A.R.S. 33-1803); check the current limits with the association's attorney.

Treat it like the audit fee: a planned line in the yearly budget rather than a withdrawal from the reserve fund. Ask the association's accountant to confirm the treatment.

Predictable wear does, such as wall repairs, drainage cleaning and roof coatings. One-off storm losses are usually an insurance question. A study can carry a line for drainage and wall repair so small storm damage does not hit operating funds.

Yes, as a maintenance or replacement line. Drywells in Arizona are generally subject to registration with the Arizona Department of Environmental Quality; your manager should know whether yours are registered.

It depends on your declaration and the plat. Perimeter walls along streets are often the HOA's; walls between private lots usually are not. Settle this before the visit so the study counts the right walls.

Yes. The resale packet shows the reserve balance and includes the latest study, if there is one (A.R.S. 33-1260, 33-1806). More on the Arizona rules page.