The following are the four points: Must be a common area asset Must have a limited life Must have a predictable remaining useful life Must be above a minimum threshold cost

Reserve Study Tutorial #2

Physical Analysis

The physical analysis is the cornerstone of the Reserve Study. It is based around the “site inspection.” When inspecting the property, Complex Solutions, Ltd. (CSL) will analyze all of the association’s “common area components” to determine which components warrant reserve funding.

Four Point Test

Generally speaking, a reserve component must pass a four-point test (designated by the CAI National Standards) in order to qualify for reserve funding.

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