How Reserve Studies Help Avoid Special Assessments

Working with condominiums and homeowner associations, few topics stir up more frustration among board members and homeowners than special assessments. These unexpected charges, often running into thousands of dollars per unit, can strain budgets, create tension within communities, and even lower property values. The good news? With a well-prepared reserve study, your association can plan ahead, keep finances healthy, and drastically reduce the need for sudden special assessments.

Why Reserve Studies Are Essential to Help Avoid Special Assessments

A reserve study is a long-term capital planning tool that outlines the expected lifespan and replacement costs of major common area components like roofs, siding, paving, elevators, and HVAC systems. By forecasting expenses over 20-30 years and aligning them with a funding plan, reserve studies give associations the roadmap needed to set accurate reserve contributions in their annual budgets.

Without a reserve study, associations often underfund reserves, leaving them unprepared for large repairs or replacements. There’s a big Difference Between Reserve and Operating Budgets. This gap leads directly to special assessments, forcing homeowners to come up with significant amounts of money on short notice. This is why it’s so important to Update Your Reserve Study in Rhode Island.

Real-World Situations

• The Leaky Roof in Warwick 

  A Rhode Island condo community in Warwick learned the hard way when their roof began leaking after 25 years of wear. Without a recent reserve study, they hadn’t saved enough for a full replacement. Every unit owner faced a $3,500 special assessment. Working with Hennessy Reserve Partners to create Rhode Island Condo Association Reserve Studies, the board would have had a clear savings plan in place to fund capital projects.

• The Elevator Breakdown in Providence 

  A high-rise association had an outdated elevator system that failed suddenly. With no reserve study in place, the association had to levy a significant per-unit special assessment to cover the immediate replacement. Today, their funding plan ensures that when the next major system reaches the end of its useful life, the money will already be there.

• The Parking Lot in Narragansett

  One coastal HOA in Rhode Island faced crumbling asphalt in its parking lot. Because their reserve study had been recently updated, the board had anticipated the expense years in advance and built adequate reserves. The project was fully funded, and homeowners didn’t pay a dime beyond their regular dues.

• Pool in South County

  For a South County association with a community pool, a reserve study can make the difference between summer fun and sudden financial stress. Pools require major repairs and eventual resurfacing every 10-15 years, along with regular equipment replacements for pumps and filtration systems. Without planning, these expenses can hit all at once and force the board to issue a costly special assessment. By working with Hennessy Reserve Partners, the association can anticipate these pool related costs well in advance, set aside the right amount each year, and ensure homeowners enjoy their amenities without surprise bills.

How Reserve Studies Protect Your Community

1. Prevents Surprises - Associations know exactly what’s coming, years in advance.

2. Promotes Fairness - Costs are spread evenly over time, rather than burdening current owners with massive one-time assessments.

3. Boosts Property Values - Buyers are more confident in communities with strong reserve funding and no history of repeated special assessments.

4. Strengthens Community Trust - Owners feel reassured when they see that the board is proactive, organized, and financially responsible.

The Hennessy Reserve Partners Advantage

At Hennessy Reserve Partners, we specialize in creating reserve studies tailored to Rhode Island’s unique housing stock and environmental challenges. We prepare the physical vs. financial analysis in reserve studies and work with your HOA and condo association property management to create reports that are easy to understand, actionable, and designed to keep your community financially secure. By partnering with us, your association can:

• Understand the exact funding level needed to avoid special assessments.

• Keep dues predictable and reasonable for all owners.

• Ensure that repairs and replacements happen on schedule—without scrambling for emergency funds.

Conclusion

Special assessments are stressful, divisive, and avoidable. With properly prepared reserve studies in Rhode Island, your community gains the clarity and financial stability needed to cover future projects without surprises. Reserve studies help avoid special assessments so don’t wait for the next roof leak or system failure, take control of your association’s future today. Have more questions about reserve studies? Read our Reserve Studies FAQs. 

Ready to start preparing for your association's future? Contact us at 401.736.8300 , info@thehennessygrp.com, or through our website.