RESERVE FUNDING
CASE STUDIES
WHY THESE CASE STUDIES MATTER Reserve studies are most effective when they inform real decisions about priorities, funding, timing, and risk. The following case studies illustrate how communities of varying sizes, ages, and structures have applied reserve study best practices to navigate common challenges from deferred maintenance and fund- ing shortfalls to governance transitions and owner engagement. These examples demonstrate that while no two communities are alike, disciplined reserve planning, clear communication, and ongoing updates consistently lead to more sustainable outcomes and stronger long-term stewardship of shared assets.
Case Study: The Long-Term Value of Periodic Reserve Study Updates
COMMUNITY PROFILE • Property Type: High-rise condominium • Location: Baltimore • Structure: 15-story building
• Year Constructed: 1960s • Initial Reserve Study: 1992 • First Update: 1997
CHALLENGE: DEFERRED AWARENESS AND GROWING RISK This mature high-rise condominium had a long history of reserve planning with an initial reserve study completed in 1992 and an update conducted in 1997. However, after the 1997 update the association did not commission another reserve study for 14 years. During that extended gap, the property continued to age, and several major building systems were approaching the end of their useful lives. By the time the next update was completed in 2011, the board faced a convergence of escalating risks: • Multiple key building systems were nearing failure. • The plaza deck membrane began to deteriorate. • Reserve funding levels were approximately 25 percent below target due in part to deviations from prior funding recommendations.
The board recognized that without a clear action plan the association risked deferred maintenance, loss of financial flexibility, and the potential need for special assessments or external financing.
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