This By-Laws document for a condominium association contains information concerning: restrictions, the board of directors, and the advisary committee.
Bylaws Condo Association With Low Reserves In Alameda
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Multi-State
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Alameda
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US-00452
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FAQ
So how much should your HOA have on hand to address these inevitable repair and replacement costs? A good rule of thumb is for Reserves to be funded at 70% or higher of the property's calculated deterioration.
Except as provided below, all associations are required to prepare a reserve study at least once every three (3) years with a review to be conducted annually to determine if adjustments are necessary to the association's reserve account requirements. (Civ. Code §§ 5300(b), 5550(a).)
National Reserve Study Standards (released in 1998) define three types of Reserve Studies: Full, Update With-Site-Visit, and Update No-Site-Visit. The Operating Budget is for the daily/weekly/monthly expenses at the association, while the Reserve Budget is for the major common area repair & replacement expenses.
California Civil Code 5550 requires a Reserve Study based on a “diligent visual site inspection” at least every third year, but requires the Board review that Reserve Study annually and “consider and implement necessary adjustments”. That's called an annual Reserve Study update.
The new HOA law in California, passed in September 2024, includes amendments to the Davis-Stirling Act of 1985. These amendments make it possible for HOAs to conduct elections online rather than through costly and time-consuming paper balloting.
Florida has very strict statutes regarding Reserve funds and their use. Reserve borrowing is largely prohibited. However, there are individual circumstances when borrowing from the reserve account is permitted in Florida. Florida statute provides an opportunity to borrow from reserves if a supermajority vote is met.
Reserves are like savings accounts – an accumulation of funds for a future purpose. The source of funding for a reserve might be surpluses from operations, or scheduled transfers that have been planned and budgeted.
It requires associations to have sufficient reserves to cover major repairs and to conduct a survey of reserves every decade. Because of the law, older condos—found largely in South Florida, ing to state records—are facing hefty increases to association payments to fund the reserves and repair costs.
While there is no ideal funding level, having adequate reserve funds to replace reserve components as they are due over time is the goal. For instance, if an association has a 75% reserve fund level, they can only replace 75% of their reserve components as they become due.
Answer: As of 2024, Florida law requires all condos over three stories to conduct mandatory building inspections and a Structural Integrity Reserve Study (SIRS) every 10 years. Additionally, associations can no longer waive or reduce reserve funds, ensuring they are fully funded to cover future repairs.