Legal Question in Real Estate Law in California

4 unit condo required by law to have reserve study?

We have a 4 unit condo (self-run informal HOA) and it was brought to our attention that a reserve study might be required. Is this true (state of California) and how do we go about doing this. Is it something we can do ourselves or how do we get started?


Asked on 9/15/08, 6:21 pm

2 Answers from Attorneys
Bryan C. Becker Your Lawyer for Life.

Re: 4 unit condo required by law to have reserve study?

Thanks for your question. California civil code requirements for reserve studies mandate that HOA's: Perform Reserve Study at least every 3 years; Update Reserve Study annually; Identify all common area components with less than 30 year life;Estimate life expectancy for those components; Estimate costs to repair or replace those components;Calculate "Percent Funded"; Compile statement of monthly contributions to cover the costs; Prove the adequacy of the reserve contributions with a 30-year cash flow.

There are many financial firms that offer this service. If you need a recommendation, please do not hesitate to contact me.

Warmly,

Bryan

Bryan Becker

619.400.4929

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Answered on 9/15/08, 6:30 pm
Ryan P. McClure The Law Offices of Ryan P. McClure

Re: 4 unit condo required by law to have reserve study?

Yes, it must be done. Do a google search and you will find firms that do it.

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Answered on 9/15/08, 6:38 pm


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