My Project Has No Common Elements, What Should My Reserve Study Look Like?
Act 62, SLH 2022, mandated that the Developer’s Public report include a “breakdown of the annual maintenance fees, which includes the annual reserve contributions based on a reserve study.” However, this office recognizes that not every condominium project has or will have common elements that require reserves. Act 62, SLH 2022, provides no exemption to such projects and thus projects with no common elements or will not have common elements still must provide a reserve study and an estimated annual reserve contribution.
Be aware that during the review, the attached reserve study will be examined to see if it the reserve the study covers all components the association is responsible for, that have a limited useful life generally within thirty years, that can be reasonably predicted as to their remaining useful life, and are of significant cost to require being reserved for rather than being treated as an operating cost. Developers will be required to amend the study and their reports for omitted components that meet the above requirements.