The reserve study needs of associations are unique, like almost everything else about this industry. While many confuse "Capital Budgets" with reserve studies, they are, in fact, different. Capital budgets refer to long term budgeting processes used by many different types of organizations worldwide. Reserve studies are effectively a modified subset of the capital budgeting process. Reserve studies are unique in that they include both capital and non-capital expenditures, but always EXCLUDE capital improvements. A more appropriate term for these types of studies is "Major Repair and Replacement" studies or MRR. Capital improvements are rare for most associations but are usually the subject of a completely separate budget when they do exist.
The reserve study is a budget, it is NOT a maintenance plan, a concept that is often misunderstood with the industry.
Several trade organizations attempt to serve those individuals who perform reserve study services who are collectively referred to as the reserve study industry..
There is only one organization that has attempted to create a set of professional level standards for the reserve study process - the International Capital Budgeting Institute (ICBI). ICBI has teamed with two other organizations to create an entire reserve study ecosystem. The Budgeting Professionals Credentialing Board has developed a professional level credential for those individuals who have completed the required education courses and have taken tests as proof of their knowledge. Associated Reserve Planners (ARP) is a trade organization created to provide education and other services for reserve professionals who adhere to ICBI reserve study standards. Together these three organizations provide all the characteristics of a profession. Links to these websites are below:
ICBI - International Capital Budgeting Institute
BPCB - Budgeting Professionals Credentialing Board
ARP - Associated Reserve Planners
The HOA Financial Group has compiled a list of more than 135 reserve study companies that have been identified nationwide. We will be providing a directory of reserve preparers who serve this unique industry. A listing in the directory is not an endorsement by the HOA Financial Group but is simply an aggregation of information. COMING SOON.