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Bill > H5824
RI H5824
RI H5824Requires condo associations to obtain and comply with reserve studies certified by an architect or engineer.
summary
Introduced
02/28/2025
02/28/2025
In Committee
02/28/2025
02/28/2025
Crossed Over
Passed
Dead
06/20/2025
06/20/2025
Introduced Session
2025 Regular Session
Bill Summary
This act would require condo associations to obtain and comply with reserve studies certified by an architect or engineer, which identifies specific common element components that will need to be repaired or replaced in the future, as well as estimate the future necessary expenses for repairs and replacement which are broken down to a monthly dollar amount per unit in an association budget. The condo association would be required to maintain a reserve fund separate from the operating fund. The reserve fund would be required to be one hundred percent (100%) funded for all expenses referenced in the reserve study. The executive board would be prohibited from using any of the reserve fund except for items specified in the reserve study. This act would take effect upon passage.
AI Summary
This bill requires condominium associations in Rhode Island with structural common elements costing at least $20,000 to replace to obtain and maintain a detailed reserve study certified by a licensed Rhode Island engineer or architect. The reserve study must identify specific common elements, when maintenance or replacement will be needed, and estimated future expenses. The association must establish a separate reserve account and include funding for the reserve study expenses in their annual budget, with a goal of achieving 100% funding of anticipated expenses by July 1, 2027. The reserve study will be valid for up to five years, and the funds in the reserve account can only be used for the specific maintenance, repair, or replacement purposes outlined in the study. This legislation aims to ensure that condominium associations are financially prepared for future infrastructure maintenance and replacement, helping to prevent unexpected financial burdens on unit owners and maintain the long-term value and condition of condominium properties.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Committee recommended measure be held for further study (on 03/04/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://status.rilegislature.gov/ |
| BillText | https://webserver.rilegislature.gov/BillText25/HouseText25/H5824.pdf |
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