Reserve Study Gap Calculator

Reserves may be under-funded. This calculator sizes gap.

Reserve study recommendation

Current reserves

Annual reserve contribution

Years to fully fund

Current gap

$1,150,000

Required annual increase

$145,000

Total 5-yr contribution

$1,150,000

How the math works

Gap = recommendation − current. Shortfall = gap − future contributions. Required increase = shortfall / years.

$1.15M gap vs $425k planned contributions over 5 years = $725k shortfall. Need $145k/year additional = $230k/year total. Large increase — plan gradual ramp or special assessment.

How to Use

Enter reserve study recommendation.
Enter current reserves balance.
Enter annual reserve contribution.
Enter years to fully fund.
Read required increase.

Frequently Asked Questions

Reserve study?

Professional study assessing 20-30 year capex needs. Identifies items (roof, HVAC, parking, paint). Projects cost and timing. Recommends funding level. Updated every 3-5 years. Required by most condo/HOA rules; advisable for rental portfolios.

Funding levels?

Fully funded: reserve balance = 100% of accumulated depreciation on capex items. Threshold funded: reserve balance = minimum statutory. Baseline funded: below minimum. Most HOAs threshold; fully funded rare. Under-funded common — leads to special assessments.

Catching up?

Spread catch-up over 3-5 years via graduated increases. Special assessment if urgent (e.g., pending roof replacement). Owner resistance vs catastrophic failure balance. Boards prefer gradual; reality sometimes forces special.

When does a lender negotiate vs foreclose?

Lenders calculate their net recovery from foreclosure (asset value minus legal, time, and sale costs) and compare to any workout proposal. If your offer nets the lender more than foreclosure, and you present it with clear sources of capital, most lenders will engage. Bring a credible sponsor, documented sources, and a timeline — vague asks get declined. Build the relationship before distress, not after.