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RESERVE STUDY GUIDELINE

State of California Department of Real Estate RESERVE STUDY GUIDELINES for Homeowner Association Budgets August 2010 State of California Department of Real Estate RESERVE STUDY GUIDELINES for Homeowner Association Budgets August 2010 This independent research report was developed under contract for the California Department of Real Estate by Eva Eagle, , and Susan Stoddard, , AICP, Institute for the STUDY of Family, Work and Community and David H. Levy, , Janet Andrews, MBA, was responsible for the original design, layout, and typography. The Department of Real Estate revised this publication in August 2010.

Because the board has a fiduciary duty to manage association funds and property, a replacement reserve budget is very important. Not only does this information supplement the annual pro forma operating budget in providing owners with financial information; the reserve study is also an

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