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RESERVE SPECIALIST (RS) Ensuring the association's reserves are properly funded is a crucial board responsibility. Hiring a Reserve Specialist or professional Reserve Analyst to perform a reserve study is the best way to plan and budget a reserve fund. A reserve study looks at reserve accounts and analyzes all foreseeable capital improvements and repairs. For example, suppose there's a clubhouse with a roof that needs to be replaced every ten years. In that case, the reserve study will advise how much and how quickly your association needs to save to make the repair at the appropriate time. 4 Tips for Vetting a Reserve Specialist Your board should always do the following prior to finalizing any contracts or partnerships with a Reserve Specialist: 1. Review laws. Not all states require reserve funds or reserve studies. Review your local and state laws for more information and ensure adherence before proceeding. 2. Read the governing documents. Check your association rules to guarantee reserve studies are completed within the proper time frame. If you live in a community without guidelines, work with a trusted advisor to implement them and make recommendations. 3. Confirm certifications. A qualified preparer will hold a reserve specialist designation. According to the Community Associations Institute (CAI), to earn the RS designation, one must do the following: • Prepare at least 30 reserve studies within the past three full calendar years. • Hold a bachelor's degree in construction management, architecture, or engineering (or equivalent experience and education). • Comply with strict rules of conduct outlined by the Professional Reserve Specialist Code of Ethics. • Pay the application fee. 4. Get a price quote. The cost of a reserve study varies with the size and complexity of your association. The price of a first-time reserve study for a small HOA typically starts at $2,400. Don't forget to plan and budget for this expense.

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