Sept 2024

S2760 & A4384... from page 20.

What now are the practical applications of the new law? For covered buildings that are impacted by the structural integrity portion of the law requiring inspec tions if the buildings are over 15 years old, those associations have two years from enactment of the law to produce and approve a struc tural inspection report. Boards and management companies are securing proposals from engineering firms and beginning to receive reports. For all associations who have not had a reserve study completed within the past five (5) years, those associ ations are or should be getting new reserve studies for their communities. They have within one year of enact ment of the law to obtain the reserve study and implement the recommen dations into their budget. There are also many associations that are going through their routine of updating their reserve studies on their normal 2 ‑ 4-year refresh of the report. For those getting first time reports, or updates, the information contained in the new reserve studies has changed. What has changed in the reserve studies? In accordance with the law, asso ciations need to fund, minimally, to a zero baseline of reserves, as exhibit ed in the required 30-year cash flow funding plan. Associations may not fund with a plan that takes them below zero baseline or negative balance funding. The CAI Reserve Standards provide for full funding, threshold fund

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SEPTEMBER 2024