The Capital Reserve Study Guide is for engineers and architects who work with condominium and cooperative boards, managing agents, property managers, attorneys, accountants, and private owners. In some cases associations and private owners often operate with insufficient reserves. Private owners who work with inadequate or no reserves may destroy their buildings and entire neighborhoods. Wishful thinking, accounting stratagems and legal maneuvers cannot control the laws of nature; building systems wear out, or fail catastrophically and have to be overhauled or replaced. An under funded property will eventually require very unpleasant choices.
Association members and their advisors must accept the laws of economics and nature and plan for the future! Someone has to pay, eventually, and the long term approach is always the fairest and least painful! This guide should help condominium and cooperative board members, and their advisors, who are committed to a rational and fair approach. The topics include: types of reserves, inspection and evaluation procedures, basic theory, useful life estimating, typical failure modes of major capital items, cost estimating and recurring questions and issues. The data in this guide will help you design well planned reserve programs and maximize the value of your clients property.