The law
- Does Pennsylvania require HOAs or condos to have a reserve study?
- No. Neither the Uniform Condominium Act nor the Uniform Planned Community Act requires one, and neither sets a minimum reserve. They do require the reserve balance to appear on the resale certificate. See PA law.
- Does our declaration change that?
- It can. Some declarations and bylaws require the board to keep reserves, or adequate reserves, for replacement of common elements. If yours does, a study is the most defensible way to show what adequate means.
- Can owners see the reserve study?
- Treat it as an association record that owners can ask to inspect, and expect buyers to request it. Have the association's attorney confirm what your bylaws and the Acts' records provisions require.
- Is a reserve study the same as an engineer's report?
- No. A reserve study is a financial plan built on a visual review of components. An engineer's report diagnoses a specific condition, such as a cracked garage slab or a leaning wall. Many boards need both, and a good study tells you when to call the engineer.
In practice
- How often should a Pennsylvania board update the study?
- With no statute to follow, use CAI's Reserve Study Standards as the benchmark: start with a full study, have the provider back on site within three years each time, and ask for a desk revision in the other years when the budget is set.
- What is percent funded?
- The reserve balance divided by the value of wear already used up on every component. A community at 30 percent has set aside less than a third of what its components have consumed, and is more likely to need a special assessment.
- Which components usually cost the most?
- In townhouse HOAs: roofs if the association owns them, private streets and siding. In condominium buildings: the facade, elevators, the roof and the parking structure. In Pocono lake communities: the dam, the roads and the lodge.
- What does a study cost?
- A full study for a Pennsylvania community usually lands between $1,500 and $18,000, set by size and how much is built; updates cost less. See pricing for the table.
- How do we pick between proposals?
- Price the same scope, check the credential of the person who visits, ask how many drafts are included, and ask the cost of the next two updates. Cheapest is rarely the deciding factor.
- Can we fund reserves faster without a big jump in dues?
- Ask the provider for a 30-year plan that phases increases in over several budgets, and compare a threshold plan with a full-funding plan. Seeing both lets owners choose the trade-off rather than having it chosen for them.
Not covered here? The Pennsylvania reserve study overview compares the state with its neighbors.