TLDR
A reserve study projects when major components (roofs, elevators, parking lots) will need replacement and how much the HOA needs to save annually to fund those replacements. Most boards outsource the study to an engineer but still need software to track the reserve balance, compare actuals to projections, and report to homeowners.
What Boards Need from Reserve Study Software
The reserve study is the engineering document. The software is the financial tracking tool. Boards need software that takes the reserve study output (component list, replacement costs, useful life estimates) and tracks progress against it.
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Tracking Reserve Balance Against Projections
The reserve study says the fund should have $450,000 by year 5. The software should show the current balance ($380,000), the gap ($70,000), and the percent-funded status (84%). If the board can see this at any time, they can adjust contribution rates before a shortfall becomes a crisis.
Integration with Fund Accounting
Reserve tracking is not useful in isolation. It needs to connect to the fund accounting system that tracks actual deposits, withdrawals, and interest. BoardStack handles both: fund accounting with operating/reserve separation and reserve balance tracking against study projections, starting at $20/month.
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See plans & pricing- Reserve study
- An engineering and financial analysis that inventories an HOA common area components, estimates their remaining useful life, and calculates the annual funding needed to replace them without special assessments.
DEFINITION
- Component inventory
- A list of all major common area components the HOA is responsible for replacing: roofs, parking surfaces, elevators, HVAC systems, pool equipment, and other capital items.
DEFINITION
- Percent funded
- The ratio of the current reserve fund balance to the amount that should be in the fund based on the reserve study schedule. A 70-100% funded reserve is generally considered adequate. Below 30% is a warning sign.
DEFINITION
Q&A
What software do HOA boards need for reserve studies?
Boards need software that tracks the reserve fund balance separately from operating funds, compares actual reserve balances to the reserve study projections, and reports percent-funded status to homeowners. The reserve study itself is typically prepared by a reserve analyst or engineer.
Q&A
How often should an HOA update its reserve study?
Most reserve study standards and several state statutes recommend updating the reserve study every 3-5 years with a full physical inspection, and annually updating the financial projections. The financial update compares the actual reserve balance to the study projections.
Q&A
Can HOA software replace a reserve study?
No. The reserve study requires a physical inspection of components by a qualified analyst. Software tracks the financial side: fund balance, contributions, expenditures, and percent-funded calculations. The two work together but software does not replace the engineering assessment.
Frequently asked