Component Inventory

A detailed list of all major common area components that the association is responsible for maintaining, repairing, or replacing. The component inventory is the foundation of a reserve study and serves as the master list from which all funding calculations are derived. Typical components include roofing systems, exterior and interior painting, asphalt paving and seal coating, concrete flatwork, fencing and gates, pool and spa equipment, plumbing and irrigation systems, HVAC systems, elevators, lighting and electrical infrastructure, and recreational amenities. For each component, the inventory records the quantity (for example, 45,000 square feet of asphalt), current condition (rated on a scale such as 1–5 or described qualitatively), estimated useful life, remaining useful life, and estimated replacement cost in current dollars. A mid-size community of 100–200 units might have 30 to 80 individual components in its inventory. In California, Civil Code Section 5550 requires the reserve study to identify and analyze the major components that the association is obligated to repair, replace, restore, or maintain. Components are generally included if they meet four criteria: the association has maintenance responsibility, the component has a limited useful life, the useful life is predictable, and the replacement cost is above a minimum threshold (often $5,000 to $10,000). The component inventory should be updated every time the reserve study is revised, typically every three years, to add new components, remove items that have been replaced, and adjust condition assessments.