Calculators
Reserve Study Interpreter
Enter the headline numbers off your reserve study and read them back in plain language
A professional reserve study runs 60 to 90 pages and ends with one figure most owners actually care about — percent funded — and almost no plain explanation of whether it spells trouble. Boards adopt budgets around a number they cannot read, and owners panic (or relax) over a percentage no one decoded for them. This tool is the missing translator.
Enter the two balances that sit on the funding-plan summary table — the fully funded balance (what the study says you should have today) and your current reserve balance — plus this year's reserve contribution and the study year. The interpreter reads them back in words: what percent funded actually measures, which of the conventional health bands you land in, what that implies for special-assessment risk, and what raising or cutting your contribution would do to the percentage over the next ten years.
The 0–30 / 30–70 / 70–130 percent-funded bands used here are the Community Associations Institute (CAI) and Association of Professional Reserve Analysts (APRA) reporting convention — descriptive funding-adequacy guidance, not a legal requirement. The one place a funding level is genuinely mandated is Florida's SIRS regime for structural components, which the tool surfaces as a clearly-separated context note. This is a reading aid, not a substitute for a licensed reserve specialist.
What this does
A reserve study runs 60 to 90 pages and ends with one number most owners care about — percent funded — and no plain explanation of whether it spells trouble. Enter the headline figures off your study's cover page or funding-plan table below, and this reads them back to you in plain language: what the number means, which health band you are in, what it implies for special-assessment risk, and what changing your contribution would do over the next ten years.
Numbers off your reserve study
These two balances usually sit together on the funding-plan summary table. The labels vary by firm — "fully funded balance" may appear as "FFB" or "100% funded."
Your reading
50% funded
Your study reports the reserve fund at about 50% funded. "Percent funded" compares what the fund holds today against the fully funded balance — the amount the study calculates you would have if every component had been saved for steadily over its useful life. It is a single snapshot, not a grade on the board. At 50% you are in the middle band most associations live in. It is a normal, workable position; the question worth asking the board is whether the percentage is trending up or down over the last few studies.
Percent funded
50%
30 to 70% funded
Current balance
$300,000
What you hold
Fully funded target
$600,000
The 100% number
Gap to target
$300,000
Below 100% funded
What this means for special assessments
Between 30% and 70% funded is the most common band for U.S. associations. It is workable, not alarming: the fund can absorb routine, on-schedule replacements, but a large early failure could still force a special assessment. The thing to watch is the trend — is the percent funded climbing year over year, or drifting down as components age and costs inflate?
Risk framing is directional, not a prediction. Percent funded is one input into special-assessment likelihood; component timing, borrowing options, and board decisions all matter too.
Contribution trajectory
Move the slider to see roughly where ten years of the changed contribution would land your percent funded.
Projected at year 10
200%
from 50% today
| Year | Projected balance | Percent funded |
|---|---|---|
| Year 1 | $390,000 | 65% |
| Year 2 | $480,000 | 80% |
| Year 3 | $570,000 | 95% |
| Year 4 | $660,000 | 110% |
| Year 5 | $750,000 | 125% |
| Year 6 | $840,000 | 140% |
| Year 7 | $930,000 | 155% |
| Year 8 | $1,020,000 | 170% |
| Year 9 | $1,110,000 | 185% |
| Year 10 | $1,200,000 | 200% |
Simplified on purpose: this projection holds the fully funded target flat and ignores investment return, so it reads as "all else equal, what does changing only the contribution do?" In a real study the target rises every year as components age and costs inflate, so the actual climb is slower. Use this as a directional reading aid, not a funding plan — your reserve specialist runs the real numbers.
What "fully funded" actually means
100% funded does not mean the reserve fund holds enough to replace every component at once. It means the balance equals the fully funded balance — the amount you would have saved by now if every component had been set aside for steadily across its useful life. A 20-year roof that is 10 years old is "fully funded" at half its replacement cost, because you are halfway to needing it.
That is why 100% is a model target, not a legal floor and not a ceiling. Most associations sit below it and operate fine. The widely-used industry convention is that funds under ~30% carry the highest special-assessment risk, the 30–70% band is workable, and 70%+ is well positioned — with no measurable extra safety from funding far beyond 100%.
The health bands, in plain English
The reserve fund holds well under a third of what the study models it should. Reserve specialists flag this band first: the cushion against an unexpected major repair is thin, so a special assessment or loan is more likely. It is a signal to raise contributions and build a plan to climb out — not a verdict that anything has gone wrong.
The most common band for U.S. associations. The fund can handle routine, on-schedule replacements, but a large early failure could still force a special assessment. The number that matters here is the trend: is percent funded climbing study over study, or drifting down as components age?
Close to or above the model target. Reserve specialists describe this as well positioned, and special assessments are less likely. 100% funded is the model target — it means the balance equals the fully funded balance — not a legal minimum, so being a little under 100% is normal.
These bands are the Community Associations Institute (CAI) / Association of Professional Reserve Analysts (APRA) reporting convention used by most reserve specialists. They are descriptive funding-adequacy guidance, not a legal requirement — your state and governing documents control what is actually mandated.
If you are a Florida condo or co-op
The bands above are a general funding-adequacy convention. The one place a funding LEVEL is actually mandated is Florida's Structural Integrity Reserve Study (SIRS) regime for the structural components — roof, load-bearing walls, foundation, fireproofing, plumbing, electrical, waterproofing, windows and exterior doors — of condominium and cooperative buildings of three or more habitable stories. For those components, full funding is required under F.S. § 718.112(2)(g) and the membership can no longer waive reserves. The general 30/70 bands do not override that.
Compare your reserve position with other boards in the Common Area.
Ask the Common AreaThis is a plain-language reading of figures you enter — it does not re-run your reserve study or replace a licensed reserve specialist. Band cutoffs follow CAI/APRA reserve-study convention, not a statute, and the Florida note above describes only Florida's SIRS regime. Take any decision about contributions or special assessments to your reserve specialist and association counsel. This is not financial or legal advice.
Statutes referenced
For reference only. Not legal advice. Confirm current statute text with counsel or via our statute reference library.