Property Management
A Montana property manager must prepare a 'reserve fund analysis' for a homeowners association property management client because:
AIt is a federal requirement under HUD
BIt estimates the long-term capital replacement needs (roof, HVAC, parking lot) and ensures the HOA has adequate reserves to fund future repairs without special assessments✓ Correct
CIt determines the market value of the common area elements
DMontana law requires it for all HOAs annually
Explanation
A reserve fund analysis (or reserve study) projects future major capital expenditures and determines if the HOA's reserve fund contributions are adequate. Insufficient reserves lead to special assessments or deferred maintenance.
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