How To Comply With New Reserve Requirements
HB 1359 was signed by Governor Ritter on May 15. It becomes effective on August 5, 2009 and applies to all common interest communities. So what does your association need to do to comply?
- Become educated about the types of reserve studies available and costs. Attend our educational programs on June 4, 2009 to learn more about reserve studies, investment vehicles and funding options. (We currently have a waiting list for these programs. Click here to add your name to the list. We may add another session if there is enough interest.)
- Adopt a policy that addresses:
a. When a reserve study will be done and how often if will be updated. Click here for our Best Practice recommendations.b. Whether your reserve study will be based on a physical and financial analysis. Click here for our Best Practices recommendations.
c. Whether the association has a plan for funding the work recommended in the plan and if so, the possible sources including use of regular assessments, special assessments, borrowing, etc.
The policy must be consistent with your governing documents and should be consistent with the association’s responsible governance policy on investment of reserves. We are happy to draft this policy for your association for a flat fee of $295.00. And, if we prepared your investment of reserve policy, we’ll revise it for free.
3. Follow your policy.