Understanding A New Jersey Reserve Study And Why Your Community Needs It
                     UNDERSTANDING A NEW JERSEY 
RESERVE STUDY AND WHY YOUR 
COMMUNITY NEEDS IT
UNDERSTANDING A NEW JERSEY RESERVE 
STUDY AND WHY YOUR COMMUNITY NEEDS 
IT
• Most homeowners in New Jersey do not see the need for contributing 
anything more to their homeowners association other than what is 
required to cover the basic operations. They forget to take into 
consideration the importance of a reserve study as well as keeping a 
stable reserve fund. 
• A New Jersey reserve study is an evaluation of a community association 
to determine the projected costs of major maintenance tasks over a long 
period of time. This study is normally conducted by a professional analyst 
and it allows the board of directors to identify the future projects that 
need to be complete soon and in the far future and accurately come up 
with a budget for undertaking them.
UNDERSTANDING A NEW JERSEY RESERVE 
STUDY AND WHY YOUR COMMUNITY NEEDS 
IT
• A reserve study is an in-depth analysis and on-site inspections of the 
community association’s assets. It projects a financial roadmap for the 
community association going into the future. Generally, this study 
consists of two parts, namely physical analysis and financial analysis. 
Physical analysis assesses the physical condition of the areas that a 
community is responsible for maintaining and repairing. It also includes a 
cost analysis of the cost of repair or replacement. Financial analysis on 
the other hand assesses the financial health of the association, such as 
revenues, expenses as well as the reserve fund balance.
UNDERSTANDING A NEW JERSEY RESERVE 
STUDY AND WHY YOUR COMMUNITY NEEDS 
IT
• So how is a New Jersey reserve study performed? This study consists of 
multiple steps. First and foremost, the management company performs 
an onsite inspection as well as evaluation of a community association’s 
finances. After that, a report will be drawn up showing all major areas of 
the association funded through reserves. This report includes an 
evaluation of the health of the current reserve fund as well as 
recommendation for a multi-year reserve funding plan. It lists the 
expected lifespan, remaining lifespan as well as the current replacement 
cost of the major areas of the associated funded reserves.
• For more information on a New Jersey reserve study and why your 
community needs it, visit our website at https://www.lockatong.com/
UNDERSTANDING A NEW JERSEY 
RESERVE STUDY AND WHY YOUR 
COMMUNITY NEEDS IT