The Lobby Makeover vs. Reserve Study: What exactly happened?

The Reserve Study (2022) indicates that $55,000 would be sufficient for both lobbies and all 16 residential corridors.  corridors.   So how is it that the board blew $230,000 for only the lobbies. Corridors—once part of the planned work—are now excluded entirely.  What caused a fourfold increase?

What Is a Reserve Study and Why It Matters

A reserve study is a planning tool that homeowners associations use to estimate the cost and timing of major repairs and replacements. Instead of reacting to unexpected expenses, a reserve study helps ensure funds are set aside gradually so that when large projects—like roof replacements, lobby renovations, or hallway upgrades—are needed, the money is already available.

Key purposes of a reserve study:

1. Long-Term Budgeting

   • Identifies major common‐area components (for example, elevators, lobby finishes, and hallway flooring).

   • Estimates each component’s useful life and replacement cost.

   • Spreads those costs across future budgets so owners aren’t hit with a large, sudden special assessment.

2. Financial Transparency

   • Provides owners with a clear projection of when significant expenses will occur.

   • Helps the board justify funding levels in the annual budget and communicate priorities.

   • Reduces surprises by showing which repairs are coming due in the next 5, 10, or 20 years.

3. Maintaining Property Values

   • By funding timely repairs, the association preserves building quality and curb appeal.

   • Well‐maintained common areas reassure prospective buyers and protect resale values.

The 2022 Reserve Study for Our Building

In 2022, our association hired professional engineers and consultants to examine the condition of both lobbies and all 16 resident corridors. Their conclusion: updating those spaces together would cost an estimated $55,000. That $55,000 figure covered flooring, lighting, paint, and minor cosmetic repairs—essentially everything needed to keep lobbies and corridors in good condition for years to come.

The study’s breakdown looked something like this:

• Lobby A (main entrance): paint, trim, lighting fixtures

• Lobby B (secondary entrance): flooring, paint, minor trim work

• All 16 Corridors: flooring repairs, baseboard replacement, fresh paint

By grouping all those areas into a single $55,000 budget, the reserve study indicated that funds were on track to cover both lobby and corridor updates without requiring an unexpected assessment.

Why its there such a discrepancy between the reserve budget and what was spent on the lobby 

Fast-forward to today’s board proposal: a $230,000 budget dedicated solely to the two lobbies, with no funding earmarked for corridor updates. Why does this matter?

1. Scope Differences

   • Reserve Study (2022): $55,000 covered both lobbies and all corridors.

   • Current Budget (2024–2025): $230,000 covers only the lobbies. Corridors—once part of the planned work—are now excluded entirely.

2. Budget Increase

   • The jump from $55,000 total in 2022 to $230,000 for just half the work suggests a significant change in either scope or cost assumptions. What could have driven a more-than-fourfold increase?

3. Planning Implications

   • If corridor repairs still require attention, deferring them may push that cost even further into the future—possibly at higher rates.

   • Homeowners deserve to know if corridor work will need its own separate funding plan later, and when that expense is likely to arise.