Thank you for choosing Strategic Inspections to complete your Reserve Study. It’s important that you know that our team is constantly striving to provide you, our client, with the most advanced reporting and data that you need to make important financial decisions about your condo/co-op property.
Recently, Reserve Studies have become an important tool for condo/co-op boards to provide data on structural and mechanical component condition to lenders for the purpose of ensuring mortgage availability for unit owners and purchasers. Although that’s only one of the reasons a Reserve Study is performed on a property, it’s an important one.
Fannie Mae and Freddie Mac have updated their lending guidelines to require proof that a condo/co-op property maintains an acceptable mechanical and structural condition and is additionally healthy financially. Jumbo and portfolio lenders have followed suit and now also have enacted these same requirements for most luxury condo and co-op property lending compliance determinations.
It’s become difficult for managers and boards to provide answers to the questions lenders ask about structural and mechanical condition of condo and co-op buildings. Wrong answers can create unwanted liability. The solution is to utilize the Reserve Study which you obtained to provide clear and concise answers to all these questions. A Professional Engineer inspected your property and provided commentary on mechanical component condition, structural condition and outlined current capital and future capital needs for repair and replacement reserves.
Our newest product release, and one that we’re most proud of, is our Lender Property Analysis. It’s included in every new Reserve Study report as of August 2023. The Lender Property Analysis provides detailed data on reserve balances, mechanical and structural condition, outlines critical necessary repairs, identifies violations, provides special assessment term and data, and identifies deferred maintenance, if present, in the condo/co-op property.
The Lender Property Analysis outlines all the key data points necessary for lender property analysis in a concise easy to understand format and it enables a board and/or property manager to submit the report for review and abstain from providing an opinion on mechanical and structural condition.
To update your current Reserve Study with a Lender Property Analysis click here.
Key Information About Reserve Studies
- Reserve Studies are valid for 36 months from site inspection and must be updated to remain compliant.
- If unplanned large component replacements and/or catastrophic failure of a system have occurred mid-cycle, your Reserve Study may need to be updated early.
- If you’ve already had a Local Law 97 energy study performed and major components are to be replaced, your Reserve Study may need to be updated.
Call or email us to discuss your property and determine if you want to add a Lender Property Analysis to your existing Reserve Study report. Looking to obtain a proposal for a Local Law 87/97 Energy Report click here.