Definition
A professional assessment of an HOA's major assets that projects when each will need replacement and how much to save each year.
A reserve study is a professional analysis that inventories an association's major common-area components, estimates each one's remaining life and replacement cost, and builds a funding plan so the money is available when it's needed.
It has two parts: a physical analysis (what you own and its condition) and a financial analysis (your reserve balance and the contributions required over a 20–30 year horizon). Getting a reserve study — and funding to its recommendation — is one of the highest-value steps a board can take to avoid special assessments.