The Benefits Of A New Jersey Reserve Study
                     THE BENEFITS OF A NEW 
JERSEY RESERVE STUDY
THE BENEFITS OF A NEW JERSEY 
RESERVE STUDY
• A New Jersey reserve study is a very important tool to homeowners associations. It is an 
analysis of the condition of a physical structure and the status of the capital reserve 
fund from which major capital improvements or replacements of various components 
will be paid.  The reserve study report is comprised of findings from an independent 
consultant and it gives the board members and owners a budget tool for planning what 
and when anticipated major expenses will be needed as well as how much and when to 
fund the reserve for paying for them.
• A reserve study plays a very important role in properly maintaining association common 
areas. It directly affects property values. Having a good plan can preserve or enhance 
property values whereas a poor or nonexistent plan will have the opposite effect. With 
the budget pressures in today’s depressed property value market, many community 
associations are not increasing their reserve assessments annually. However, inflation 
affects future maintenance obligations annually, meaning that the longer you continue 
ignoring that adequate reserve funding, the greater will be the gap a between funds on 
hand compared to maintenance obligations. 
THE BENEFITS OF A NEW JERSEY 
RESERVE STUDY
• Once a homeowners association conducts a New Jersey reserve study, the 
study can be used to create a capital replacement plan. There are quite a 
number of benefits of having a long term capital replacement plan, 
including  providing a framework for prioritizing major projects and 
decision making, evaluating and validating current capital reserve policies 
and documenting the need for common fees, assessments as well as 
loans if necessary. A long term capital replacement plan also protects the 
unit from unexpected large assessments or debt on service loans for 
capital improvement projects. It also serves as a guideline for future 
board members and management and documents responsible 
stewardship.
• For more information on the benefits of a New Jersey reserve study, visit 
our website at https://www.lockatong.com/
THE BENEFITS OF A NEW 
JERSEY RESERVE STUDY