 |
 |
 |
 |
 |
 |
 |
A Reserve Study is a summary used by common interest developments to disclose the financial standing of the reserves in compliance with California Civil Code 1365.5. TROWER provides a Reserve Study that contains a physical inspection and a funding analysis section. Future annual accounting and physical inspection updates are available at reduced cost.
The Board of Directors must conduct a physical Reserve Study every third year when the current replacement cost of the common area components is equal to or greater than one-half of the Association's budget.
An Association must perform a Reserve Study by law every third year. The board must review the Reserve Study annually. In California there is currently no requirement to fund the reserves only the need to disclose the financial standing of the reserves to current owners, potential buyers and lenders.