CCS Reserve Studies & Capital Planning Flashcards
6 cards from real CCS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CCS Reserve Studies & Capital Planning flashcards as text
What is the primary purpose of a reserve study for a condominium association?
Answer: To project long-term repair and replacement costs for major common components and ensure adequate funding
A reserve study analyzes the condition and remaining useful life of major common components to determine how much money the association must save to fund future replacements.
Which funding method for reserves calculates a single contribution rate that keeps the reserve fund solvent over a long period without dramatic fluctuations?
Answer: Percent-funded method
The percent-funded (or baseline/threshold) method sets contribution levels to maintain the fund above a target minimum balance rather than fully funding every component individually.
A reserve study's 'component inventory' section identifies all major components by listing their:
Answer: Current condition, estimated remaining useful life, and current replacement cost
The component inventory documents each major item's physical condition, how many years of useful life remain, and the estimated cost to replace it when the time comes.
What does the term 'percent funded' indicate in a reserve study?
Answer: The ratio of actual reserve fund balance to the fully funded balance, expressed as a percentage
Percent funded compares the association's current reserve balance to what it would need to be fully funded for all components at their current age, expressed as a percentage.
According to best practices, a reserve study should be updated at minimum:
Answer: Every five years with a site visit, and reviewed annually without a site visit
Best practices recommend a full reserve study update with a physical site inspection every three to five years, with annual reviews to adjust for inflation and spending variances.
Which professional designation is most commonly associated with conducting a credible reserve study for a condominium association?
Answer: Reserve Specialist (RS) from CAI or Professional Reserve Analyst (PRA)
The Reserve Specialist (RS) credential from the Community Associations Institute and the Professional Reserve Analyst (PRA) from APRA are the recognized designations for reserve study professionals.