What assesses the long-term financial needs for maintenance in a condominium?

The Reserve Fund Study is specifically designed to assess the long-term financial needs for maintenance within a condominium. This study evaluates the physical condition of the common elements and common assets of the property, determines their expected lifespan, and estimates the future costs required to maintain and repair them.

By providing a projection of the necessary funds, the Reserve Fund Study helps ensure that there will be sufficient financial resources available when major repairs or replacements are needed. It is a crucial component for condominium corporations to plan effectively for future expenses, ensuring financial stability and preventing sudden, high costs for the residents.

In contrast, a Financial Feasibility Study focuses more on evaluating the viability of specific projects rather than long-term maintenance costs. An Annual Budget Review deals with the short-term operating expenses and income for the year, rather than future capital expenditures. A Maintenance Assessment often refers to an evaluation of current conditions and needed repairs but doesn’t provide the comprehensive analysis of long-term funding needs that a Reserve Fund Study does.