Board questions
The reserve study questions Minnesota boards and managers bring to us, in the order they tend to come up.
Before you hire anyone
What is the difference between Level I, II and III?
Under the CAI National Reserve Study Standards, Level I means the provider inspects the property and builds the component list from scratch, Level II means they come back to check that list on site and revise the numbers, and Level III revises the numbers from the office with no visit. A first study in Minnesota should be Level I.
How many proposals should we get?
Two or three on the same written scope. Proposals written to different scopes cannot be compared on price.
Should the manager or the board choose the provider?
The manager can gather proposals, but the board should choose and sign. The study supports decisions the board has to defend to owners.
During the study
What should we hand the provider?
The declaration and plat (to show who maintains what), the last study, recent budgets and the reserve balance, invoices for major replacements, and any engineering or roof reports.
Can a site visit happen in winter?
It can, but snow hides roofs, pavement and garage decks. In Minnesota, aim for April to November, and ask the provider to note anything they could not see.
Should ice dam damage be in the study?
Repairs after a bad winter are usually an operating or insurance matter. What belongs in the study is the effect on roof, gutter and fascia lives. See the University of Minnesota guidance on ice dams for causes.
After the report
Do owners have to approve the funding plan?
Generally the board adopts the budget, including reserves. Minn. Stat. 515B.3-1141 also describes owner approval of another funding route; check with the association's attorney before using it.
What if the study says we are badly underfunded?
Model the options: a phased increase in dues, a special assessment, a loan, or deferring a component with a documented risk. Most boards use a mix. Share the model with owners before the vote.
Do buyers see the study?
Buyers see the reserve figures in the resale disclosure certificate under Minn. Stat. 515B.4-107, and lenders often ask for the study itself.
When do we do the next one?
The reevaluation is due at least every third year. The Minnesota reserve studies homepage has a picker that counts it from the year of your last one.
Get a quote when you are ready
Tell us where the community is, how big it is and when reserves were last looked at. A Minnesota provider can then price the right level of study rather than a guess.
This form goes to Minnesota Reserve Studies, a referral service rather than a study firm. We tell you which provider we suggest before anything is passed on, and only send your notes once you agree.
Thanks, your request is in.
- We read it the same day where we can, and by the next weekday you get a call or email naming a provider who covers your part of Minnesota.
- Nothing moves until you answer. Agree and the provider gets your notes; decline and they never see them.
- The provider confirms the scope, the level of study and a fee in writing. No newsletters follow.