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.
- Adopt a policy that addresses:
- When a reserve study will be done and how often if will be updated.
- Whether your reserve study will be based on a physical and financial analysis.
- 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.
- Follow your policy.