When Is the Last Time Your Condominium Association Initiated a Reserve Study?

It has been almost three years since Champlain Towers South, a twelve-story beach front condominium in Surfside, Florida collapsed. Many states, including Maryland and Virginia, have enacted (or had previously enacted) legislation or ordinances requiring residential condominiums to periodically conduct reserve studies and then fund reserve accounts as recommended in these studies in order to have funds available for deferred maintenance and capital improvements and replacements. As of this writing, the District of Columbia has yet to enact such a requirement. 

If you are a Board Member of a Condominium Association, whether it be a residential, commercial or mixed-use condominium, it is be a prudent idea to discuss at the Board level establishing and executing a reserve study and funding policy. Conducting a reserve study every three to five years permits the Association to better understand the status and useful life of the common components of the Condominium building. It provides the Association with financial certainty and permits the Association to properly fund the reserve account so that the Association should not need to enact a special plan for an unscheduled large expense.

Many structural engineering firms provide reserve studies. It is always best practice to obtain bids from three different companies before selecting the engineering company to provide the reserve study. Do be certain the engineering firm is qualified to do business in the jurisdiction where the Condominium is located, and the engineer who signs the report is licensed in your state. If you have a property manager, your property manager may have a few names to provide to the Board.

The material on this website is not offered as legal advice on any matter and should not be used as a substitute for seeking professional legal advice.