Any board of directors acting on behalf of a unit owners' association is required to comply with the new legislation if the association’s common components have a combined replacement cost exceeding $10,000.
A professional reserve study, conducted by a qualified individual, must be completed every five years.
Deadlines to comply with the reserve study requirements are dependent on whether your association has an existing reserve study. Associations that have had a reserve study completed on or after January 1, 2020, are required to update their existing study within five years of the date of the most recently completed study. Associations that have not had a reserve study to date or their most recent reserve study was completed prior to January 1, 2020, are required to conduct a reserve study no later than 1/1/2025.
The reserve study must conform to the latest edition of the Reserve Study Standards published by Community Associations Institute (CAI) or similar standards by another nationally recognized organization. Furthermore, the study must be completed by a reserve specialist who is credentialed through CAI or a similarly recognized organization, a licensed Professional Engineer or Architect.
