Replacement Reserves Schedule Template & Example

The evaluation term is twelve years, 2026 through 2037, set by the client scope agreed with Northbank Capital. It is the client's term and not a standard one: E2018-24 states no default evaluation term anywhere in its text, and where it addresses long-term costs it defines them over an evaluation period set by the user. Had this been a Fannie Mae loan the term would have come from Form 4099 instead — the loan term plus two years beyond maturity — and the Replacement Reserve would then be sized over the Guide's own period, from origination to whichever comes sooner, two years after maturity or twelve years after origination.

Costs are stated in current March 2026 dollars with no inflation applied; the client's underwriting model applies its own escalation, and applying one here would compound it. Quantities are measured or counted except where identified as estimated. This schedule carries components expected to require replacement or major repair within the term. Components with a remaining useful life beyond 2037 are not carried, even where they were observed to be aging.

Expected useful lives are taken from HUD's CNA e-Tool Estimated Useful Life Table where that table covers the component, cited per line below with the column used, and are the assessor's judgement where it does not. Every line says which.

Field order on every line:

component — quantity — age and how established — expected useful life and its source — remaining useful life — unit cost — extended cost — year or years carried.

Roofing, residential buildings:

three-tab asphalt shingle — 11 buildings, approx 71,500 sq ft — 39 years, reported original to construction — EUL 20 years, HUD CNA e-Tool table, Asphalt Shingle, both columns give 20 — RUL 0-1 years — $5.85/sq ft — $418,275 — year 1

Roofing, clubhouse:

low-slope membrane, type not established — approx 5,400 sq ft — not established; recoating reported approximately eight or nine years ago — no EUL applied, because the membrane type was not established: HUD gives 15 years for adhered EPDM and for thermoplastic membranes, and 20 years for a built-up roof with gravel finish — RUL not derived — $11.50/sq ft — $62,100 — year 4, carried on the conservatism basis below rather than from a service life

Asphalt paving:

mill and overlay — approx 118,000 sq ft of drive aisles and parking — 39 years, partial overlay reported circa 2011, undocumented — EUL 20 years, assessor's judgement: no public table found for this library gives a service life for an asphalt overlay, HUD's nearest rows being Asphalt Pavement at 25 years (3.2.4.1), Curbing, Asphalt at 25 (3.2.4.4) and Asphalt Seal Coat at 5 (3.2.4.2), none of which is an overlay over an existing base — RUL 0-2 years — $3.40/sq ft — $401,200 — years 2 and 3, split by phase

Concrete walkways and curbs:

partial replacement — approx 9,000 sq ft of an estimated 34,000 sq ft — presumed original, 39 years — EUL 40 years, assessor's judgement, no published table cited — RUL 4 years, adjusted upward from the 1 year the age and EUL alone would give, because the displacement observed is confined to 14 joints on one walkway run and the remaining flatwork is sound — $9.20/sq ft — $82,800 — year 5

Domestic water heaters, in-unit:

40-gallon gas — 132 units, 110 carried — mixed, replaced on failure; 22 units evidenced as replaced 2019 or later, 7 by nameplate and 15 from the capital expenditure history — EUL 12 years, HUD CNA e-Tool table, Residential hot water heater gas or electric, Family column; the Elderly column gives 15 — staged rather than a single RUL — $1,150 each — $126,500 — years 1-6, approximately 18 per year

HVAC, split systems:

condensing units and coils — 132 systems, 91 carried — mixed; 41 evidenced as replaced 2017 or later, 6 by nameplate and 35 from the capital expenditure history — EUL 15 years, HUD CNA e-Tool table, Electric AC condenser pad or rooftop; HUD lists the furnace or air handler separately at 20 years, and this line follows the condenser because the condensers are what was observed and dated — staged rather than a single RUL — $4,300 each — $391,300 — years 1-8

Windows:

vinyl replacement, partial replacement at 25 percent of units — 132 units — installed circa 2008, reported — EUL 30 years, assessor's judgement — RUL 12 years — $3,900 per unit — $128,700 — year 12

Exterior painting and sealant:

full cycle — 11 buildings plus clubhouse — last cycle reported 2018 — EUL 8 years, HUD CNA e-Tool table 3.3.2.4.5, Paints and stains, exterior, both columns give 8, and consistent with the reported cycle length — RUL 0-1 years — $61,000 per cycle — $122,000 — years 1 and 9

Siding repair and partial replacement:

estimated 12 percent of wall area — 11 buildings — original, 39 years — no EUL applied, condition-driven — n/a — lump sum — $148,000 — years 2 and 3

Stair systems:

remaining wood stair runs not carried on the immediate repairs schedule — 14 runs of 22 — original, 39 years — EUL 30 years, HUD CNA e-Tool table 3.3.2.7.1, Exterior Stairs, wood frame/stringer, both columns give 30 — RUL 2-4 years, adjusted upward from the zero the age and EUL alone would give: these 14 runs are the ones where probing found no rot, and the 8 that did are on the immediate repairs schedule — $7,625 per run — $106,750 — years 3 and 4

Pool and pool deck:

resurfacing and equipment replacement — one pool — last resurfaced reported 2016 — EUL 10 years for the equipment, HUD CNA e-Tool table 3.2.7.8, Pool/Spa pumps and equipment, both columns give 10; HUD gives the pool deck 15 years at 3.2.7.6 and this line bundles the two, which is a departure stated here rather than hidden — RUL 0-1 years — lump sum — $84,000 — year 2

Clubhouse interiors:

flooring, fixtures and HVAC — one clubhouse — HVAC nameplate 2009, finishes undated — no single EUL applied, carried as a bundled refresh — n/a — lump sum — $112,000 — year 6

Site lighting:

pole and fixture replacement — 34 poles — 39 years, reported original — EUL 30 years, assessor's judgement and a deliberate departure from the HUD table, which gives ground lighting 10 years at 3.2.8.2.8 and building-mounted lighting 10 at 3.2.8.2.9: those rows price a fixture, and this line is the poles and their bases as well, which outlast several generations of fixture. HUD permits a justified departure and this is the justification — RUL 0-2 years — $2,850 each — $96,900 — years 2 and 3

Laundry equipment, common:

12 machines — leased and vendor-maintained per management — excluded, see exclusions

Electrical distribution:

unit and building panels — not carried, see exclusions and the immediate repairs schedule

Term total, all components:

$2,280,525

Contingency at 15 percent:

$342,079 — the percentage is the assessor's judgement for this property, not a convention; no standard or agency scope used in this library establishes a contingency percentage for a reserve schedule, and it should not be lifted into another report as though it were one

Term total including contingency:

$2,622,604

Expected useful life, generally: where HUD's CNA e-Tool Estimated Useful Life Table covers the component, this schedule uses it and says so on the line, naming the column used. That table is free to download and is the only publicly available service-life table this library has verified. Three things about it are worth stating rather than burying. It gives two columns, Family and Elderly, which differ for some components — the residential water heater is 12 years in the first and 15 in the second, and this property is conventional multifamily, so the Family column is used. It is organised to the 2008 edition of the E2018 outline and the published file carries a 2017 date. And HUD itself treats the values as averages a preparer may depart from, provided the departure is justified in the record. Where the table has no row for the component — an asphalt overlay is the case that matters most here — no number is borrowed from an adjacent row; the line says the life is the assessor's judgement. On a Fannie Mae loan this choice would not be the assessor's: Form 4099 directs the consultant to the Estimated Useful Life Tables at its Appendix F.

Residential roofing: age reported by both the property manager and the maintenance manager as original to 1987 construction. No invoices, permits or warranties were provided, and none were located in the capital expenditure history supplied for 2019 to 2025. The reported age is corroborated by observation — granule loss, mat exposure on south-facing slopes, and ridge cupping consistent with a shingle roof at or past service life — so the reported age is used with a 20-year life from the HUD table, which puts the roofs 19 years past it.

Domestic water heaters and HVAC: ages taken from nameplate manufacture dates in the 15 units observed, and from the capital expenditure history supplied for 2019 to 2025. Seven of the 15 units observed carried water heaters dated 2019 or later; 15 further units are evidenced as replaced in that period by invoice, giving 22 excluded and 110 carried. The sample proportion was deliberately not extrapolated to the balance. Extrapolating 7 in 15 across 132 units would have excluded about 62 and carried about 70, reducing this line by roughly $46,000 on the strength of a 15-unit sample; carrying every unit not individually evidenced is the more conservative treatment and is the one used. The same method gives 41 excluded and 91 carried for the split systems. What remains unknown is the age of the appliances in the units neither observed nor invoiced, which is the weakest ground in this schedule and is identified as such: they are carried at full replacement within the term, which will overstate the reserve if some of them are newer than assumed.

Asphalt paving: a partial overlay circa 2011 was reported by the maintenance manager and is undocumented. Observed condition — alligator cracking through the wearing course across the northern drive aisle, with base failure suspected in two areas — is consistent with an overlay of that age over an original base, and the schedule carries mill and overlay rather than full reconstruction. If base failure proves widespread on removal, that treatment is inadequate and the cost rises substantially.

Clubhouse roof: approximately two thirds of the roof area could not be observed, as no ladder of adequate length was available on site and no interior roof hatch exists. The maintenance manager reported a recoating approximately eight or nine years ago; no documentation was provided, and the original installation date is unknown. Two treatments were available. Carrying a recoating at year 8 would cost approximately $18,900. Carrying full replacement at year 4 costs $62,100. The schedule carries full replacement, because a membrane of unknown age, previously recoated, and unobserved across most of its area cannot responsibly be assumed to have a decade of life left in it. If the client wishes to refine this, observation of the full roof area — a lift or a drone would suffice — would settle it and could reduce the reserve by roughly $43,000.

Electrical distribution panels: not carried in this schedule at all. Because the panel type could not be established, any figure would be a guess dressed as a projection. The exposure is described in the immediate repairs schedule instead, where it belongs as an open question rather than a funded line.

Stair systems: the immediate repairs schedule carries 8 of 22 exterior stair runs on an assumed quantity. This schedule carries 14 further runs across years 3 and 4 — the balance — on the basis that runs of identical construction and exposure will require replacement within a few years of each other. If the immediate repairs assumption proves high, this line grows correspondingly; the two are complementary and should be read together.

Year figures below are the component schedule only; the contingency is carried once, at the end, rather than spread across the years.

Year 1:

$551,575 — residential roofing, the first painting cycle, and the first year of the water heater and HVAC staging

Year 2:

$519,450 — first paving phase, siding, pool, site lighting, continued staging

Year 3:

$404,325 — second paving phase, siding, site lighting, first stair phase, continued staging

Year 4:

$183,475 — clubhouse roof, second stair phase, continued staging

Year 5:

$150,800 — concrete walkways, continued staging

Year 6:

$182,300 — clubhouse interiors, final year of water heater staging

Year 7:

$47,300 — HVAC staging only

Year 8:

$51,600 — final year of HVAC staging

Year 9:

$61,000 — second exterior painting cycle

Year 10:

nil — no expenditure scheduled

Year 11:

nil — no expenditure scheduled

Year 12:

$128,700 — partial window replacement

Component total:

$2,280,525

Term total including contingency:

$2,622,604

Normalised:

$1,656 per unit per year, across 132 units and twelve years

The average is the least useful number in this section and is provided only because underwriting models ask for it. Approximately two thirds of the term's spend — $1,475,350 of $2,280,525 — falls in years one through three, and two years in the middle of the term carry nothing at all. A reserve funded at the twelve-year average from year one would be roughly $820,000 short by the end of year three. The distribution above, not the average, is the number to plan against.

Items on the immediate repairs schedule are not repeated here. Laundry equipment is leased and maintained by the vendor per the property manager, and is excluded on that basis; if the lease is assumed at acquisition, the buyer should review its terms, which were not provided. Unit interior finishes — carpet, cabinetry, countertops — are excluded as cosmetic and as a function of the buyer's renovation intentions rather than the property's condition; a repositioning budget is not a reserve schedule. Components with a remaining useful life beyond 2037 are excluded, including the vinyl replacement windows except the 25 percent partial replacement carried in year 12. Environmental conditions of every kind are outside the scope of this assessment and are neither observed nor carried.