Using a Reserve Study for Creating a 30-Year Capital Plan
- Kristen Hrabcsak
- 1 day ago
- 5 min read
Financial stability for condominiums, HOAs and other associations doesn’t just happen, it’s carefully planned. One of the most effective ways to ensure your association’s long-term success is by using a Reserve Study to create a 30-year capital plan.
A Reserve Study is a snapshot of your property’s current condition and a roadmap that helps boards make smart, data-driven decisions about repairs, replacements, and long-term spending. When used correctly, it becomes the foundation for a comprehensive 30-year capital plan that keeps your community financially healthy and prepared for the future.
What is a 30-Year Capital Plan?
A 30-year capital plan outlines how your association will fund major repairs and replacements over the next three decades. It’s typically built using the findings from your Reserve Study, which identifies each major component of the property, like roofs, siding, elevators, paving, HVAC systems, and pool equipment, and projects their remaining useful life and replacement cost.
The result is a detailed forecast that helps boards anticipate expenses, prevent financial surprises, and maintain property values.
How a Reserve Study Powers a Long-Term Capital Plan
A Reserve Study is the cornerstone of effective capital planning. It combines physical analysis (the inspection of all major components) with financial analysis (the funding plan) to create a complete picture of your association’s financial health. (Related: Physical vs. financial analysis in reserve studies)
Here’s how each part contributes to a 30-year plan:
Component Inventory & Condition Assessment Every building system, from roofs to retaining walls, is cataloged and evaluated. Example: If your association’s roof has 10 years left before replacement and costs $100,000, the Reserve Study builds that into the long-term plan so you’re setting aside about $10,000 per year (plus inflation).
Cost Estimates & Life Cycle Forecasting Each component’s remaining useful life and replacement cost are projected. Example: Paving the parking lot every 20 years might cost $50,000 now but $75,000 in 20 years. Your Reserve Study accounts for inflation so the funding stays accurate.
Funding Plan Development The financial side determines how much to contribute annually to avoid large special assessments. (Related: Reserve Studies Help Avoid Special Assessments)
Ongoing Updates & Adjustments Because materials, costs, and community needs evolve, associations should Update Your Reserve Study in Rhode Island every 3-5 years to stay on track.
Real-World Examples of Using a Reserve Study for Capital Planning
Example 1: Small Condo Association
A 12-unit association in Providence found that its Reserve balance was only 20% funded. Their Rhode Island Condo Association Reserve Study showed that roof replacement, siding repairs, and repaving were due within the next decade. By implementing a 30-year capital plan, they adjusted annual dues by $25 per month per unit, preventing a $60,000 special assessment later on.
Example 2: Large Waterfront Community
A coastal common interest community in Narragansett used a Reserve Study to plan for seawall maintenance, elevator modernization, and waterproofing projects. The 30-year plan allowed them to stagger major repairs, scheduling the roof replacement in 2030 and the siding project in 2033, while keeping reserve contributions steady.
Example 3: Mixed-Use Development
A mixed-use property with residential and retail space used its Reserve Study to plan HVAC replacements in phases rather than all at once. This 30-year strategy improved cash flow and tenant satisfaction while maintaining compliance with What Rhode Island Law Says About Reserve Studies requirements.
Difference Between Reserve and Operating Budgets
One of the most common points of confusion for boards is understanding the Difference Between Reserve and Operating Budgets.
Operating budgets cover day-to-day expenses like landscaping, cleaning, and utilities.
Reserve budgets fund major repairs and replacements (the “capital projects” identified in your Reserve Study).
Your 30-year capital plan focuses on the Reserve portion, ensuring funds are available when big projects come due.
Avoiding Common Reserve Study Mistakes
When developing a long-term capital plan, avoid these Common Reserve Study Mistakes:
Not updating the study regularly - costs, inflation, and conditions change over time.
Ignoring smaller components - even minor systems like gates or mail kiosks can be expensive to replace.
Underfunding reserves - short-term savings often lead to long-term financial strain.
Failing to coordinate with property management - implementation matters as much as planning.
Working with Your Property Management Team
Creating a 30-year capital plan is just the first step. Executing it effectively requires ongoing collaboration. This is where your property management team becomes essential.
At The Hennessy Group, our property management in RI division works hand-in-hand with Hennessy Reserve Partners to:
Track maintenance projects and timelines
Gather vendor quotes for upcoming capital improvements
Manage repair scheduling and quality control
Provide accurate accounting and budget tracking through our online portal
Together, with your condo association property management, we ensure your Reserve Study is a living plan that guides real decisions year after year.
Whether you’re a self-managed condo board or a large HOA, partnering with a local property management company in Rhode Island ensures that your 30-year plan stays on track and aligned with your community’s evolving needs.
Absolutely. Even smaller associations benefit from planning ahead.
For example, a four-unit condo might share a single roof and parking area. A sudden $40,000 expense can cause hardship if funds aren’t available. With a 30-year capital plan built on a solid Reserve Study, small communities can save gradually and responsibly.
Choosing the Right Partner for Creating a 30-Year Capital Plan
Your association’s success depends on working with the Right Partner for Your Reserve Study in Rhode Island. You want a partner that understands local construction costs, weather conditions, and the unique challenges of New England communities.
At Hennessy Reserve Partners, we specialize in Reserve Studies in Rhode Island that combine detailed Reserve Studies Components analysis with practical funding strategies. Whether you’re updating your plan, catching up after years without one, or preparing for an upcoming major project, our experts can guide you every step of the way.
Ready to Build Your 30-Year Plan?
A Reserve Study is about compliance and confidence. With the right plan in place, your board can make informed decisions that preserve property value, prevent financial stress, and ensure a thriving community for decades.
If your association is ready to use its Reserve Study to create a 30-year capital plan, or if you need help maintaining and implementing it, contact Hennessy Reserve Partners today. Our team, together with The Hennessy Group’s property management division, can help you turn your study into a strategic action plan for the future.
Together, we’ll create a plan that ensures your association’s future is well-funded and stress-free. Contact us at 401.736.8300 , info@thehennessygrp.com, or through our website.
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