Community associations, encompassing various forms like condominiums, townhomes, HOAs, and commercial entities, often face the challenge of determining which components should be part of their reserve studies. Specifically, the considerations surrounding landscaping and irrigation in reserve studies can be both complex and crucial. This article aims to provide clarity on these subjects while supplementing the content with valuable insights from online sources.
Landscaping in Reserve Studies
Landscaping holds undeniable significance for community aesthetics and functionality. However, when it comes to reserve studies, it is generally not categorized as a reserve component. There are several compelling reasons behind this industry practice:
- Unpredictability of Landscaping: The lifespan of living components like trees and shrubs is inherently unpredictable. Although arborists can provide approximate lifespans, these estimates remain fluid due to a multitude of factors, including climate conditions, pests, and overall maintenance.
- Predictable Replacement Materials: Reserve studies are designed to estimate the costs of repairing and replacing components using similar materials. For example, if a community needs a new asphalt pavement, it will typically be replaced with asphalt. The predictability and standardization of materials allow for accurate cost projections. Landscaping projects often involve enhancements and aesthetic upgrades, making long-term cost forecasting challenging.
- Variable Spending Priorities: Community boards change regularly, and each board may have varying priorities for spending on landscaping. This variability further complicates cost predictions, making it challenging to incorporate landscaping into a standard reserve study.
Online sources suggest several proactive steps regarding landscaping in community associations:
- Integrate Predictable Costs: For larger communities with routine landscaping expenditures, such as tree pruning every few years, these predictable costs may be considered on a case-by-case basis and integrated into the reserve study.
- Document Landscaping Plans: Associations should maintain records of their landscaping plans, budgets, and expenditures. This documentation can serve as a valuable reference for future reserve study discussions.
Irrigation: A Standard Reserve Component
In contrast to landscaping, irrigation systems are typically considered a standard reserve component due to their more predictable useful lifespans and maintenance schedules. While the core material, such as PVC pipes, may have a long lifespan, the irrigation system’s complexity offers various points of potential failure, including components like pipes, fittings, valves, and wires.
Online sources provide insights into how irrigation is commonly addressed in reserve studies:
- Consider Partial Funding Accumulation: Some associations opt for partial funding accumulation for irrigation systems. While these systems may not require immediate maintenance within the 30-year study horizon, allocating funds for future maintenance or replacement can provide financial advantages, preventing the need for substantial reserve fund increases in the future.
- Phased Replacement: In older communities, especially those constructed in the 80s or 90s, irrigation systems are more likely to require maintenance or replacement within the 30-year study timeframe. These systems seldom fail entirely at once and are usually replaced in phases, reflecting the varying needs of different zones.
- Routine Maintenance: Similar to a vehicle’s oil changes or brake replacements, addressing component failures in irrigation systems promptly is essential for maintaining smooth functionality.
Online research emphasizes the importance of engaging with a reserve study provider to tailor the approach based on the community’s unique characteristics and long-term financial goals.
In conclusion, landscaping and irrigation present unique challenges and opportunities in the context of reserve studies for community associations. While landscaping is generally not part of the standard reserve study due to its unpredictability, irrigation systems are typically included, with the approach varying based on the community’s specific circumstances. Engaging in open dialogue with reserve study professionals is essential to craft a customized and financially prudent approach that aligns with the community’s goals.
