Reserve Data Analysis, Intl.

Settlement Solution Services™

In some cases, the original budgets prepared for an association are inadequate.  Outdated costs, inaccurate specifications, and incomplete inventories can result in substantial deficiencies in the reserve account, leaving the association with inadequate funding to properly repair or replace all of the major components for which it is obligated to maintain.  As part of our Settlement Solution Services™, RDA typically performs current and retroactive reserve studies to assess the association's financial position at any particular time during its existence. This will determine the appropriate level of reserves which should have accumulated during critical points for the association.  This could be during developer or board transitions, or at any other particular time and interest to the client.

Additionally, many associations find themselves facing the prospect of litigation concerning construction defect issues and/or questions as to the overall adequacy of their reserve funds.  Are they properly funded?  What impact will construction defect issues have on their overall financial health? 

Reserve Data Analysis, Intl. has been aiding both associations and developers in resolving disputes equitably, with a level of experience and expertise unequaled in the industry.  The information below outlines the services we offer to assist clients should they become faced with these critical decisions.

Throughout the litigation process an association will need to make several important decisions having a significant impact on the future financial stability of the association.  RDA provides services which will empower the board to make accurate and informed decisions during this process.  The first step is to update the association's current reserve study, incorporating all construction defect components, repair information, and the prioritization of those repairs.  During settlement conferences, computer-generated scenarios will allow the board to assess the financial impact of repair decisions and monetary settlement offers, even as they are being made, assisting them in fulfilling their legal and fiduciary obligations on behalf of the community.

Generally, the best laid plans never materialize as expected.  By conferring with construction management throughout the repair process, RDA can evaluate the impact of modifications on the overall budget and even suggest alternate repair or assessment scenarios as needed.

Settlement Solution Services™ Offered

DISCOVERY PHASE

• Inventory Verification – Verify developer-provided or other inventories and measurements for accuracy and completeness.
• Budget and Decision Analysis – Analyze past budgets and developer or board documented decisions to identify and determine the cause of any insufficient funding, including a thorough review of all related financial information.
• Reserve Study Preparation – Perform current and retroactive reserve studies to determine the level of reserves which should have accrued at the time the developer surrendered control of the board to the association or any other critical time in the association’s history.

SETTLEMENT PHASE

• Current Reserve Study Preparation – Prepare a new and complete reserve study for the current fiscal year for the client.
• Settlement Impact Analysis – Assess the impact of settlement offers through computer-generated scenarios.
• Repair Prioritization – Interact with experts and construction management to prioritize repairs and develop an optimal repair schedule.

IMPLEMENTATION PHASE

• Repair Monitoring – Confer with construction management throughout the repair process to ensure optimal repair execution and evaluate the impact of repair modifications on the reserve budget.
• Reserve Study Updating – Once the repairs are completed, RDA will perform an updated reserve study to determine revised reserve contributions required, and provide 30 year projections on all data.
• Ongoing Consultation – Provide ongoing consultation with the Board and manager regarding reserve and budgeting matters, prior to, throughout and following the repair process.