Reserve Studies in Arizona

How does Arizona’s climate affect condominium associations and HOA Reserve Studies?

Arizona’s climate can significantly affect the condition and lifespan of common-area components. Communities throughout the state experience intense ultraviolet (UV) exposure, prolonged extreme heat, monsoon storms, flash flooding, dust, drought conditions, and large temperature swings between daytime and nighttime. Northern Arizona communities, including Flagstaff and Prescott, may also experience snow, freezing temperatures, and freeze-thaw cycles during the winter months.

Components that may be especially affected include:

• Roof systems
• Exterior stucco, masonry, paint, and sealants
• Asphalt roads, parking lots, and driveways
• Concrete sidewalks, curbs, and retaining walls
• Pool surfaces and equipment
• Irrigation systems and landscaping
• Site lighting and electrical equipment
• Gates, fencing, and perimeter walls
• Waterproofing systems
• Clubhouses, recreation facilities, and other shared amenities

A professional Reserve Study helps Arizona condominium associations and homeowners associations anticipate these conditions by estimating the remaining useful life of common-area components, projecting future replacement costs, and developing a long-term reserve funding plan. This gives boards a stronger basis for budgeting, scheduling repairs, and reducing the risk of unexpected capital expenses.

Does Arizona law require condominium associations and HOAs to obtain a Reserve Study?

Arizona does not currently require every condominium association or homeowners association to obtain a professional Reserve Study. Arizona condominium associations are governed by the Arizona Condominium Act (A.R.S. § 33-1201 through § 33-1270), while homeowners associations are governed by the Arizona Planned Communities Act (A.R.S. § 33-1801 through § 33-1818). Although neither statute establishes a statewide Reserve Study requirement, boards remain responsible for managing association finances and maintaining common property in accordance with applicable law and the community’s governing documents.

Some associations may also have reserve-planning requirements in their governing documents. Lenders reviewing condominium projects under current Fannie Mae and Freddie Mac requirements may also consider information contained in a professionally prepared Reserve Study completed within the previous 36 months.

What components are included in an Arizona Reserve Study?

The components included in a Reserve Study depend on the association’s governing documents, maintenance responsibilities, and common-area assets. An Arizona Reserve Study may evaluate components such as:

• Roof systems
• Exterior stucco, masonry, and siding
• Exterior painting and protective coatings
• Waterproofing and sealants
• Asphalt roads, parking lots, and driveways
• Concrete sidewalks, curbs, stairs, and retaining walls
• Clubhouses and community buildings
• Swimming pools, spas, splash pads, and pool equipment
• Tennis, pickleball, and basketball courts
• Playgrounds and recreational amenities
• Fencing, gates, and perimeter walls
• Monument signs and entry features
• Site lighting and electrical infrastructure
• Irrigation systems and landscaping improvements
• Stormwater drainage systems
• HVAC systems serving common areas
• Plumbing and mechanical equipment serving shared facilities
• Fire protection and life-safety systems
• Elevators, where applicable
• Mail kiosks, package lockers, and other common-area improvements

For each included component, the Reserve Study documents its condition, estimates its remaining useful life and future repair or replacement cost, and incorporates that information into a long-term funding plan. Arizona’s heat, UV exposure, monsoon storms, and regional climate differences may also affect component life cycles and project timing.

How often should an Arizona Reserve Study be updated?

Global Solution Partners generally recommends reviewing reserve contributions each year during the budgeting process and updating the Reserve Study with a site inspection at least every three years. An earlier update may be appropriate after major capital projects, significant storm damage, substantial construction-cost changes, changes in maintenance responsibilities, or other events that affect the assumptions used in the existing study.

Does Global Solution Partners perform Reserve Studies throughout Arizona?

Yes. Global Solution Partners provides professional Reserve Studies, Property Condition Assessments, Insurance Appraisals, and long-term capital planning services for condominium associations, homeowners associations, commercial properties, municipalities, resorts, and nonprofit organizations throughout Arizona. We serve communities in Phoenix, Scottsdale, Mesa, Chandler, Gilbert, Tempe, Glendale, Peoria, Surprise, Goodyear, Tucson, Flagstaff, Prescott, Sedona, Lake Havasu City, Yuma, Casa Grande, Oro Valley, Queen Creek, Green Valley, and other locations across the state.

Can Global Solution Partners perform Reserve Studies for resort communities?

Yes. Global has extensive experience working with resort properties, destination hotels, golf communities, vacation ownership properties, and hospitality developments. Whether the property is located in Scottsdale, Sedona, Tucson, or another Arizona destination, our Reserve Studies help owners and associations plan for future repairs, replacements, and long-term capital improvements.

What are the new Fannie Mae and Freddie Mac lending guidelines?

Fannie Mae and Freddie Mac continue to place increased emphasis on the financial health and physical condition of condominium communities. Depending on the applicable review process, lenders may consider reserve funding, deferred maintenance, structural concerns, insurance coverage, and plans for major capital repairs when evaluating a condominium project’s eligibility for financing.

A professionally prepared Reserve Study can help document the condition of common-area components, anticipated repair and replacement costs, and long-term reserve funding needs. A Reserve Study does not by itself determine whether a community satisfies every Fannie Mae or Freddie Mac requirement, but it can provide important information for lenders, boards, and property managers.

Read more about the new Fannie Mae and Freddie Mac requirements.

Does a Reserve Study help prevent special assessments?

A Reserve Study cannot guarantee that an association will never need a special assessment, but it can reduce the likelihood that predictable capital expenses will catch the community unprepared. By identifying major repair and replacement projects in advance and establishing a long-term funding strategy, associations can spread many costs over time instead of addressing them only after a component fails.

Why should our Arizona association choose Global Solution Partners?

Global Solution Partners combines nationwide Reserve Study experience with an understanding of the conditions affecting Arizona communities. Our Reserve Studies are prepared in accordance with Community Associations Institute National Reserve Study Standards and include detailed component evaluations, realistic replacement-cost projections, practical funding recommendations, responsive project management, a complimentary board presentation, and one complimentary revision following report delivery.

How much does a Reserve Study cost?

The cost of a Reserve Study depends on the property’s size, number of buildings, amenities, common-area components, records, and overall complexity. A smaller association with limited shared assets will generally require a different level of effort than a large master-planned community, resort, or mixed-use property. Contact Global Solution Partners for a proposal based on your property’s specific scope.

How long does a Reserve Study take to complete?

Project timelines vary depending on the property’s size and complexity, the availability of association records, site-visit scheduling, and the number of components being evaluated. Global Solution Partners strives to complete most Reserve Studies within approximately 30 days after receiving the necessary information and completing the property review.

What are reserve funds?

Reserve funds are association funds set aside for future major repairs and replacements of common-area assets. Unlike operating funds used for routine expenses, reserves are intended for longer-term capital needs such as roofs, pavement, building exteriors, mechanical equipment, and shared amenities.

How do I request a Reserve Study proposal?

Requesting a proposal is easy. Contact Global Solution Partners with information about your property, including its location, age, number of units or buildings, property type, and major common-area amenities. Our team will review the scope and prepare a customized proposal.

What do you receive when you hire Global Solution Partners?

• A professional Reserve Study prepared in accordance with CAI National Reserve Study Standards
• Oversight from experienced Reserve Specialists and knowledgeable project managers
• A field evaluation of the property’s applicable common-area components
• Component schedules and realistic replacement-cost projections
• Practical reserve funding recommendations developed for the property’s needs
• A complimentary board presentation to review the findings and answer questions
• One complimentary revision following report delivery

Global Solution Partners helps Arizona boards turn property conditions, future project needs, and reserve funding assumptions into a practical long-term plan. Our goal is to provide clear information that associations can use to maintain shared assets, prepare for major projects, and make informed financial decisions.