reserve Study Frequency
Civil Code §1365.5(e)

Every Three Years. Associations are required every three years to visually inspect the common areas and prepare a reserve study and then update it annually. The reserve study must do the following:

1. Identify the major components that the association is obligated to repair, replace, restore, or maintain that, as of the date of the study, have a remaining useful life of less than 30 years.

2. Identify the probable remaining useful life of the components.

3. Estimate of the cost of repair, replacement, restoration, or maintenance of the components.

4. Estimate the total annual contribution necessary to defray the cost to repair, replace, restore, or maintain the components.

5. Prepare a reserve funding plan.

Annual Updates. The allocation of reserve items is not written in stone. Allocations are only projections and subject to revision annually as roofs, boilers, etc. wear out at their own rates. As a result, the board must review the association's reserve study, or cause it to be reviewed, annually and shall consider and implement necessary adjustments to the the reserve account requirements as a result of that review.

For a list of companies that specialize in providing reserve studies for community associations, see our Service Directory.

Updated by ADAMS KESSLER 4/26/2008