Bill > HB2563

This bill mandates that common interest associations, which are organizations responsible for managing shared property in condominiums and similar communities, must conduct and update a "reserve study" every five years. A reserve study is defined as an analysis to determine the funds needed for future major maintenance, repairs, and replacements of common elements, such as structural components, mechanical systems, and infrastructure like roads or pools, especially when the cost exceeds $10,000. Associations are given a five-year grace period to complete their first reserve study or update an existing one. Furthermore, when a unit within the community is sold, the association must provide a copy of its most recent reserve study to any potential buyer upon request. However, associations with 15 or fewer units are exempt from this specific reserve study requirement, though they must still adhere to general budgeting and reserve rules outlined elsewhere in the law. Similar changes are also being made to the Condominium Property Act, ensuring these provisions apply to condominiums as well.