What does the law require?
The declarant must commission a professional reserve study that forecasts the maintenance, repair, and replacement of association-maintained assets over a thirty-year period. This study must be completed and delivered to the association prior to the transfer of control from the declarant — ensuring boards are equipped with a reliable capital plan from day one.
What declarants need to know
The reserve study must be completed prior to the transfer of control from the declarant to the association. This ensures the incoming board has a comprehensive, current capital plan in hand when they assume governance.
The reserve study must be prepared by an independent reserve study professional or other qualified professional with knowledge of industry standards. The reserve study preparer must have no business relationship with or financial interest in the declarant beyond being retained to conduct the reserve study.
Within 60 days after the unit owners other than the declarant elect a majority of the members of the board, the declarant shall provide a copy of the reserve study to the newly elected board.
