Tool
Reserve fund health checker
Get a quick directional grade for an association's reserve fund using three inputs from a reserve study: funding percentage, study age, and the count of deferred capital items.
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Reported on the most recent reserve study.
Items recommended for replacement that have been deferred (roof, elevators, façade, etc.).
Reserve health
Enter your reserve study details to grade reserve health.
Adjust the inputs on the left or click Recalculate to see the grade, the drivers behind it, and recommended next steps.
- • Current funding percentage
- • Age of the last reserve study
- • Count of deferred capital items
How the grade is calculated
Funding percentage drives a base grade. Stale studies (more than five years old) and a high count of deferred items downgrade the result. The output is a rubric-based grade, not an audit or actuarial opinion. Statutory funding thresholds vary by state and may differ from the general thresholds used here.
What "percent funded" actually means
Percent funded is the current reserve balance divided by the fully-funded balance the engineer's study calculated for today's replacement schedule. An association at 100% has cash on hand equal to the accumulated depreciation of every reserved component. An association at 30% has 30% of that amount. The number does not measure future income — only the gap between cash on hand and replacement obligation already accrued.
Industry conventions: under 30% is critical, 30–70% is weak, 70–100% is healthy, and over 100% is strong. The famous 6.9% Champlain Towers number was below the critical threshold for years. Different studies use different methodologies (full vs. baseline, cash-flow vs. component); reading the methodology section is part of using the number.
Why the study age matters
Reserve studies should be updated every 3–5 years for most associations and annually for buildings under structural review. A 10-year-old study reflects 2016 replacement costs and component conditions that have aged by a decade. Florida's SIRS regime requires studies on a defined cycle; Texas and Arizona do not. A "100% funded" grade against a stale study is not the same as a 100% grade against a current study.
Reading the next step
The grade is a starting point, not a verdict. If the grade is weak or stale, the next steps are reading how to actually read a reserve study, cross-referencing it against the operating budget, and reading the past 24 months of meeting minutes for funding-discussion patterns. See the FL/TX/AZ reserve fund rules guide for state-specific statutory frameworks.
See the same analysis on your real reserve study.
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