What is a Reserve Study?
A Reserve Study will provide an analysis of funding reserves required for future major repairs and replacements of common elements (such as roofs, pavement, or other components that are the responsibility of the community association), and the annual contributions necessary to achieve the funding requirements over the long term. The community association will ideally set aside funds for all major repairs and replacements based on the Reserve Study analysis.
What is the House Bill 107?
The Reserve Study requirement that was previously applicable to only Prince George's and Montgomery Counties, is now applicable statewide according to the newly passed Legislation, House Bill 107 (HB 107).
The House Bill 107 requires that community associations throughout Maryland conduct a Reserve Study (and an updated Reserve Study) every five years of the items needed for future repairs and replacement of common elements of a condominium, cooperative housing corporation, or common areas of a Homeowners Association (HOA).
What does this mean for my community?
If your community IS NOT located in Prince George’s or Montgomery Counties…
- A community that has had a Reserve Study conducted on or after October 1, 2018 must have that reserve study updated within five years from the date to that study, and every five years thereafter.
- A community that has not had a reserve study on or after October 1, 2018, must undertake one no later than October 1, 2023, and that study must also be updated every five years thereafter.
If your community is located in Prince George’s County…
- There is no change from previous requirements. An updated Reserve Study was required to be completed by October 1, 2021, and is required every 5 years thereafter.
If your community is located in Montgomery County…
- There is no change from previous requirements. An updated Reserve Study is required to be completed by October 1, 2022, and is required every 5 years thereafter.
Requirements on who can prepare this Reserve Study for your Community:
- Has prepared at least 30 reserve studies for the applicable type of community within the prior three calendar years.
- Is currently a designated Reserve Specialist by the Community Association Institute or a Professional Reserve Analyst by the Association of Professional Reserve Analysts.
- Holds a Bachelor's degree in architecture, engineering, construction management, or has equivalent education/experience
- Holds a current license from the State Board of Architects or the State Board for Professional Engineers.
The Falcon Group Capital Reserves team consists of 8 CAI Certified Reserve Specialist (RS) as well as a Professional Reserve Analyst (PRA) designation awarded by the Association of Professional Analysts.
Contact us for your Reserve Study Today!