At least once every three years, the board should conduct a visual inspection of all accessible areas of the major components that the association is obligated to repair, replace, restore, or maintain. The board should review the study and resulting Reserve Funding Plan annually, and implement necessary adjustments to the board’s analysis of the reserve account requirements pursuant to the new Davis-Stirling Act effective January, 1 2014.
Requirements
The study should, at a minimum, include:
- Identification of the major components that, as of the date of the study, have a remaining useful life of less than 30 years.
- Identification of the probable remaining useful life of the components identified in paragraph (1).
- An estimate of the cost of repair, replacement, restoration, or maintenance of the components identified in paragraph (1).
- An estimate of the annual contribution necessary to finance the maintenance or replacement of the components identified in paragraph (1) during and at the end of their useful life, and after subtracting total reserve funds.
- A Reserve Funding Plan that indicates how the association plans to fund the maintenance and replacement of components identified in paragraph (1).