Conduct and contents of study of reserves; review of study and necessary adjustments to reserves by board; regulations.
1. The board of an association shall:
(a) Cause to be conducted at least once every 5 years, a study of the reserves required to repair, replace and restore the major components of the project;
(b) Review the results of that study at least annually to determine if those reserves are sufficient; and
(c) Make any adjustments it deems necessary to maintain the required reserves.
2. The study required by subsection 1 must be conducted by a person qualified by training and experience to conduct such a study, including a member of the board or the manager of the time-share plan or the project, or both, who is so qualified. The study must include, without limitation:
(a) A summary of an inspection of the major components of the project;
(b) An identification of the major components of the project which have a remaining useful life of less than 30 years;
(c) An estimate of the remaining useful life of each major component identified pursuant to paragraph (b);
(d) An estimate of the cost of repair, replacement or restoration of each major component identified pursuant to paragraph (b) during and at the end of its useful life; and
(e) An estimate of the total annual assessment that may be required to cover the cost of repairing, replacing or restoring the major components identified pursuant to paragraph (b), after subtracting the reserves of the association as of the date of the study.
3. The Administrator shall adopt by regulation the qualifications required for conducting a study required by subsection 1.
Last modified: February 27, 2006