Law Guide

Our summary:“An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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State statues outline that associations may adopt and amend budgets for revenues and reserves and collect assessments for common expenses [Section 35-8A-302]. Additionally, offering statements need to include a budget [Section 35-8A-403 & 35-20-13] and statement of the amount included in the budget for repairs and replacement.” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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State statues outline that public offering statements must contain a statement of the amount included in the budget as a reserve for repair and replacement including the estimated cost of repair or replacement cost and the estimated useful life of the asset to be repaired or replaced [Section 34.08.530].” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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State statues note that associations may adopt budgets for reserves and collection assessments for common expenses from unit owner [Section 33-1242].

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A copy of the most recent reserve study of the association, if any, should also be provided to individuals who purchase a property within a planned community with fewer than fifty units [Section 33-1260].” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

Arkansas has not yet instituted legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary:“An Association should conduct a reasonably competent and diligent visual inspection of the accessible areas of the major components that the association is obligated to repair, replace, restore, or maintain as part of a study of the reserve account requirements of the common interest development.” (§5550)” – RSG

Our summary:“An Association must specify whether or not any maintenance, repair, replacement, or improvement of the common elements and payment needs prior approval of the association when an expense exceeds a specific amount. The bylaws must also specify the methods used to estimate the assessments” (Title 38 Section 33-106)” – RSG

Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Connecticut has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Delaware has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary:“An Association has the responsibility to budget and determine reserve accounts for capital expenditures and deferred maintenance for which the association is responsible (718.112)”.

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We recommend you visit the Florida State Page for more information - Florida" – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Georgia has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary:“An association shall perform a reserve study to estimate replacement reserves that the association requires to maintain the property.” (§514B-148)” – RSG

Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Idaho has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary: "All budgets adopted by a board of managers shall provide for reasonable reserves for capital expenditures and deferred maintenance for repair or replacement of the common elements” (Chapter 765 ILCS 605 Section 2).

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Outside of the requirement above, no further reserve related legislation has been passed. – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Indiana has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Iowa has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Kansas has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Kentucky has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

Our summary:“An Association must establish reserves to provide for maintenance, improvements, replacements, and other appropriate purposes. An association may adopt and amend budgets for revenues, expenditures, and reserves and make and collect assessments for common expenses from unit owners” (1123.102, 1123.106).

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Outside of the requirement above, no further reserve related legislation has been passed. – RSG

Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Maine has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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As part of the documents to be delivered by unit owner to purchaser (resale of unit), a copy of the current budget of the condominium including the current reserve study report or a summary of the report, a statement of the status and amount of any reserve or replacement fund, or a statement that there is no reserve fund must be provided [Section 11-135].

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Maryland has not yet introduced specific legislation in relation to the reserve or reserve studies, although there is movement on the legislative front. ” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Massachusetts has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Michigan has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Minnesota has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Mississippi has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary: “An Association may adopt and amend budgets for revenues, expenditures, and reserves, and collect assessments for common expenses from unit owners” (448.3-102.1).

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Outside of the requirement above, no further reserve related legislation has been passed. – RSG

Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Montana has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Nebraska has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

Our summary:“An Association shall conduct a study of the reserves required to repair, replace, and restore the major components of the common elements and any other portion of the common-interest community that the association is obliged to maintain, repair, replace, or restore.” (NRS 116.31152)” – RSG

Our summary:“An Association, at least annually, shall adopt a proposed budget for the unit owners’ association for consideration by the unit owners. The board shall provide all of the unit owners a summary of the budget, including any reserves, and a statement of the basis on which any reserves are calculated and funded” (Chapter 356-B:40).

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Outside of the requirement above, no further reserve related legislation has been passed. – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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New Jersey has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary: An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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An Association may adopt and amend budgets for revenues, expenditures and reserves, and collect assessments for common expenses from unit owners (47-7C-2).”

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Outside of the requirement above, no further reserve related legislation has been passed. – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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New York has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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North Carolina has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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North Dakota has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Ohio requires associations to 'adopt and amend budgets for revenues, expenditures, and reserves in an amount adequate to repair and replace major capital items in the normal course of operations without the necessity of special assessments, provided that the amount set aside annually for reserves shall not be less than ten per cent of the budget for that year unless the reserve requirement is waived annually by the unit owners exercising not less than a majority of the voting power of the unit owners association' [Section 5311.081].

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Outside of the requirement above, no further reserve related legislation has been passed. ” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects. Oklahoma has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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UPDATE: Bill HB 3060 was introduced in February 2020 to address the need for property owner associations to plan, update and fund for replacement costs that exceed $50,000. The legislation if passed will require associations to conduct a reserve study every 5 years and annually review and budget for reserves. We will monitor to see how the Bill progresses.

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Our summary: “An Association shall establish a reserve account to fund major maintenance, repair, or replacement of common elements, and conduct a reserve study to determine the reserve account requirements. An Association shall also prepare a maintenance plan for the maintenance, repair and replacement of all property for which the association has maintenance, repair or replacement responsibility (100.175)”.

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We recommend you visit the Oregon State Page for more information - Oregon State" – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Pennsylvania has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Rhode Island has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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South Carolina has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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South Dakota has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Tennessee has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Utah adopted legislation that requires associations to conduct a reserve study at least once every six years. An association shall annually provide unit owners a summary of the most recent reserve study or update [57-8-7.5)”.

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We recommend you visit the Utah State Page for more information - Utah" – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Vermont has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Virginia adopted legislation that requires associations to conduct a reserve study at least once every five years. Review the results of the study at least once every year . Annually provide a general statement describing the procedures used for the estimation and accumulation of cash reserves and the extent to which the association is funding its reserve obligations consistent with the study (55-79.83:1)”. We recommend you visit the Virginia State Page for more information - Virginia" – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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State statues outline that public offering statements must contain a statement of the amount included in the budget as a reserve for repair and replacement including the estimated cost of repair or replacement cost [Section 42-1904.04]” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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West Virginia has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Legislation states that a condominium created on or after November 1, 2004, shall establish a reserve account and execute a reserve account statement.” – RSG

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Our summary: “An association should periodically undertake a reserve study and review their funding strategy to ensure reserves will adequately address anticipated repair, replacement and major maintenance projects.

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Wyoming has not yet introduced legislation in relation to the reserve or reserve studies. ” – RSG

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