Is a RESERVE STUDY really needed?

We are a small (50 SFH) HOA that, although being established 27 years ago, has never had a reserve study done. Our only amenity is a lake that is shared w/a neighboring HOA of 60 Townhomes. In 2017 the Townhomes commissioned a study that was a report of Subsurface Exploration and Dam Evaluation. That report included a number of options regarding repair to the dam and the “less costly solution” would be around $300K.

1. Do we need a reserve study as we only have one amenity?
2. If yes, would a new lake/dam study need to be commissioned?

You do not provide details, but it sounds like there might be some kind of issue with the shared lake? Possibly involving a dam and $300K? I think you and the townhome community should be communicating about what is going on with the lake.

I'm not seeing that you need an actual reserve study. But if the townhome people are claiming there is some kind of expensive problem with the shared lake, the HOA should be actively meeting with them. And yes, for a $300K item, you'll probably want to get a 2nd opinion study.

Bill

Dawn,

South Carolina has a dam safety office that oversees the dams in your state. Their "advice" is not optional, but I bet your property is in the state files. They'll work with you but understand that they are a regulatory office that, once on site, could observe dam conditions needing immediate repair. However, you'd know, in the official sense, the condition of your dam.

At best, you just need to know the condition of the dam and maybe whether sediment is building up in the lake to a point that dredging becomes even a far-off issue. With that info, you then estimate costs with an engineering firm and make note for your dues payers.

The 2017 townhome study is not relevant.

If your owners are responsible for a lake with a dam, you definitely need periodic inspections and a reserve study.

Thank you, BillD16. Initially I thought I was providing too many details for a question about the reserve study, but obviously that wasn't the case. I think a new review of the lake/dam is what's in order.

Does the Association have signage?
Does the Association have playgrounds?
Does the Association have entrance monuments/signage?
Is the Association responsible for any lights?
Does the Association have planting beds?
Does the Association maintain roads or parking areas?

No to all. Look like I need a new lake/dam study before any reserve study. Thanks for replying.

No common elements. 50 SFHs. The county owns the roads but you are right about storm water. When we deeded the roads over there was specific language in the deed about surface water in that it won't be their problem, it will be ours. :\

Hi Dawn, I have been involved in a property which has a dam and a small lake on site.

1. Do we need a reserve study as we only have one amenity?
Yes, dams have costs related to operation, maintenance, inspection, etc - you need to be planning for these costs!

2. If yes, would a new lake/dam study need to be commissioned?
Yes, in your case, it might be better to talk to dam engineers, rather than reserve study people. Your mission is to understand: what work is needed, how often, and how much it will cost. Most reserve study people have never worked on a dam before, and probably won't be much help in estimating these costs.

For reference: here in Massachusetts, a dam engineer charges $4,500/year to come do an inspection, and submit the mandatory annual report to the Office of Dam Safety. If the engineer finds anything that needs work, that is additional $$$!

From a quick google, it seems like good info for your state is available here:
https://des.sc.gov/programs/bureau-water/dams-reservoirs
https://www.clemson.edu/extension/water/resources/dam-ownership.html
https://www.youtube.com/watch?v=YjBAT9MkXrM

Personally, I would first refer to State law. If it requires a Reserve study, get one done. If it doesn't play it by ear. Keep in mind that when one goes on this forum, and in particular with any questions having to do with Reserves, there's a large industry out there anxious to soak up HOA dollars.