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Reserve Study Funding Calculator

HOAs and condo associations are required to maintain reserves for major component replacement (roof, paving, HVAC, elevators, paint). Reserve studies project component lives and replacement costs; funding studies size the annual contribution required to be adequately funded by the time each component dies. This calculator computes the annual contribution and per-unit monthly fee.

$

Roof, HVAC, paving, etc.

$
%

Annual contribution required

$19,095

Monthly / unit

$11

Currently funded %

21.33%

Current reserve future value

$756,238

How the math works

Reserve study funding sizes the annual contribution required so the HOA or condo association has cash to replace major components (roof, paving, HVAC) when their useful life expires. Most jurisdictions require reserves to be at least 10-30% funded relative to projected replacement need.

Underfunded reserves trigger special assessments — often $5K-50K per unit. Florida's 2022 condo law (post-Surfside) now mandates fully funded reserves on a milestone-inspection schedule.

How to Use

  1. Enter total replacement cost over the 30-year horizon (from reserve study).
  2. Enter current reserve balance and reserve interest earned %.
  3. Enter years to fund and number of units.
  4. Read required annual contribution, monthly per unit, and current funded percent.

Frequently Asked Questions

What's a 'fully funded' reserve?

Reserve balance equals the depreciated current replacement value of all components. Most associations target 70%+ funded; under 30% is critically underfunded.

Florida HB 5-D / SB 4-D requirements?

Buildings 3+ stories require milestone inspections at 25-30 years and reserve funding studies updated every 10 years. No more waiver of reserves.

What happens if underfunded?

Special assessments — often $5K-50K per unit when major components fail. Underfunded reserves also depress unit resale values and trigger lender warranties.

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