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|Statutory Funding Model
of four funding models
to establish an appropriate funding
level for the reserve
components in a building so that the owners can make an informed decision based on their tolerance for risk.
This method uses local statutes to determine the minimum amount of money (ie., thresholds) to set aside in the reserve account for future renewal projects, such as replacement of the roof, boiler or hallways carpets.
There are two types of statutory funding models:
Listed below are some examples of statutory funding models from different jurisdictions;
Listed below are some of the merits of the statutory funding model:
Fig. Excerpt from a funding model graph.
Fig. Workflow to illustrate how lumpy funding models form part of a sensitivity analysis.
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