CAI Reserve Study Standards
The Community Associations Institute (CAI) has established standards for reserve studies prepared by those individuals holding the CAI RS (Reserve Specialist) designation. The standards provide general information regarding capital reserve studies, describe the three recognized types of reports, and list reserve study report required contents. These standards are far less comprehensive than Generally Accepted Reserve Study Standards, which are the recognized international standard.
Click here to view CAI National Reserve Study Standards
CAI Reserve Study Best Practices
The Community Associations Institute has published a white paper entitled Reserve Study Best Practices. While we believe that this publication is useful, we also believe it is incomplete. It is provided so readers are aware of what others in the industry believe are best practices.
CAI Reserve Study Standards
The Community Associations Institute (CAI) has established standards for reserve studies prepared by those individuals holding the CAI RS (Reserve Specialist) designation.
The standards provide general information regarding reserve studies, describe the three recognized levels of service regarding reserve studies, and list the required report contents of a reserve study.
Click here to view CAI National Reserve Study Standards
Levels of Service
CAI standards identify the following four levels of service. The ICBI standards differ dramatically here, as ICBI identifies these as "Types of Engagements" rather than levels of service. ICBI instead recognizes two levels of service, the "Independent Reserve Study" and the "Reserve Management Plan." The difference is that the independent study is the work product of the preparer representing his or her opinion that may have little correlation to the association's actual plans. The Reserve Management Plan is a collaborative process between the preparer and the association that by its very nature conforms closely to the association's actual plan and usually results in a much more reliable study.
Level 1 - Full Reserve Study
The preparer performs what is described as a "site visit" where the preparer identifies and quantifies components and evaluates component condition. The scope of the site visit is limited to a visual observation.
Level 2 - Update of Reserve Study with Site Visit
Once a full reserve study has been completed the reserve preparer will often perform updates with a site visit. The level 2 site visit is less comprehensive than a level 1 in that the preparer is not required to obtain or verify measurements and counts unless it appears that there have been changes. The purpose of this level of service is to update the evaluation of component condition and the photo inventory where necessary.
Level 3 - Update of Reserve Study Without Site Inspection
The level 3 service does not include a site visit but is simply an update of the numbers.
Level 4 - Reserve Study based on Building Plans
The level 4 services is used to create a projected reserve study based on architectural plans for structures that do not yet exist.