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Reserve Studies

Current legislation in Washington, RCW 64.34.380 and 64.38.065, provide that condominium and homeowner associations shall prepare and update annually a Reserve Study, and that the initial Reserve Study must be based upon a visual site inspection conducted by a Reserve Study Professional.

  • Year 1: Full Level I Reserve Study
  • Year 2: Level III Reserve Study Update (Update without a site visit)
  • Year 3: Level III Reserve Study Update (Update without a site visit)
  • Year 4: Level II Reserve Study Update (Update with a site visit)
Why have a reserve study completed?

In addition to the requirements of RCW 64.34 and 64.38, an increasing number of banks are requesting a copy of the association’s reserve study for first and second mortgage applications of individual homeowners. A proper reserve study will:

  • Protect the Board of Directors from personal liability concerning adequate reserve funding
  • Eliminate uncertainty of over-funding or under-funding reserves
  • Maintain the community in a good state repair
  • Establish a fair & stable contribution for current and future owners
  • Comply with the American Institute of CPA's (AICPA) annual audit requirements
  • Maintain higher individual resale values
  • Reduce the risk of special assessments or borrowing
How can we help?

As Reserve Study specialists, we offer a professional assessment of the condition, useful life, remaining useful life, and replacement cost of the common and limited common area components an association has an obligation to maintain; an accurate financial analysis of the current reserve; and sound recommendations on the financial contributions necessary to ensure that funds will be available when needed.  Collectively, David Bach & Associates has been preparing reserve studies for 14+ years serving more than 1,500 associations in the Pacific Northwest.

Who else can benefit from a reserve study?

Aside from Condominium and Homeowner Associations, the following types of properties may also benefit from the completion of a Reserve

  • Country Club
  • Athletic Club
  • Swim Club
  • Community Center
  • Commercial Buildings
  • Apartments
  • Timeshares
  • Retirement Communities
  • Churches and other Religious Buildings
  • Schools
  • Government Properties
  • Non-profit Organizations

"On behalf of the Board of Directors and Homeowner’s community, I would like to thank you for services provided in preparation of our Reserve Study. The project was educational and was handled with expert professionalism. At every stage of the process we appreciated your ability to provide information and explanation pertaining to process, production, and reasoning for decision making.

We particularly appreciate the sense of collaboration you took in undertaking the Reserve Study. We feel strongly that the product obtained is more valuable, better understood, and a more accurate assessment than might have otherwise been received as a result of the expertise you brought and teamwork you demonstrated with our Board and building manager."

Board Secretary
Concord Condominium Association