Community associations don’t generally gety y y


married, and


therefore,don’thave a need for ar weddingplanner. (That said, some associations have merged with other associations,r so I guess community association y


the question, but that’s a totally different article.) However, community associations do have much planning to do, and


y


boards need information to assist in that planning. Like a wedding, a community associationy


Like a wedding planner, a reserve study cany replacement.


can have many parts. be a guide for


and alleviate the stress of making important decisions about future building maintenance, repair andr


At its core, a reserve study isy a tool. A community associationy board uses a reserve study in planning and budgeting for the future replacement and substantial repairs of the building and its component parts based on the useful life of the different portions of the building. A reserve study involves a physical review of thef


portions that will require replacement or repairr


or replacement based on the expected remaining useful life of thosef building. The reserve study mayy


building to identify they r over time.r


The reserve study will provide recommendations about when certain portions of thef


building will likely needy portions of thef


y also provide


recommendations on the anticipated cost of future repairs or replacement. Those recommendations can be used by ay board to budget for reserver


that funds are available to pay fory or replacementr


at the time they arey


assessments. It is important to remember whatr


funding, which will ensure r the repairs needed.


Such planning ensures the financial security of thef


repair marriage is not out of


including California, Colorado, Delaware, Florida, Hawaii, Maryland, Nevada, New Jersey, Oregon, Tennessee, Utah, Virginia, and Washington State.


In 2024, CAI, through the Illinois Legislative Action Committee, had a bill introduced in the Illinois General Assembly toy amend the Condominium Property Acty Common Interest Community Association Act to require


and the y


all condominiums, master associations, and common interest community associationsy periodically updatey


have mandated any specificy studies. For thoser


interested in the nitty grittyy y


that reserve study. The bill would not reserve funding. Only reserve y of legislation,f


obtain a reserve study andy y


the bill was House Amendment No. 1 to HB220. That bill moved out of the House and into the Senate where it faced some opposition. The bill ultimately died However, that will not be the end of reservef in Illinois. Because the proper planning for futurer replacement is so important for ther y


Reserve studies provide important information necessary to properly plan for future repair and replacement of the association’s building


association and avoids the need for heftyr y special reserve studies are not.


They are not a detailed evaluation of existing building conditions. Also, they doy not set forth specific recommended corrective repairs. Such inspections and reports should be obtained by qualifiedy


professionals when a specific repair orr replacement is necessary.


In thewakeof the tragedy that befell theChamplain Tower Southr


y more generally. One topic of condominium in Surfside, Florida, in 2021, a


national conversation about structural integrity in high- rise condominiums began. That conversation expanded to community associations


those conversations concerned the proper planning for future repairs and replacements and having adequate funds available to pay fory


study isy an excellent way toy plan for futurer


r those repairs and replacements. Areserve obtain relevant information to


replacement and substantial repairs.


CAI was part of the conversation involving future repairs and replacements and developed a public policy on reserve studies and funding. Pursuant to that public policy, CAI supports statutory mandates that all community associations obtain reserve studies and have adequate reserve funding. CAI believes statutorily requiredy


studies and funding will benefit all community associationsy because such legislation is aimed at making better andr financially sound communities. Several states already have laws requiring reserve studies or reserver


y 62 | COMMON INTEREST® y funding or both,


reserve more


has been introduced.


in the Senate. study legislationy repair andr


health and financial


wellbeing of af community association, CAI plans to have the bill re-introduced during the 2025 legislative session.


At the time this article is being written, no new reserve study billy However, by they


article, the author fullyr y in


time you are reading this y expects a bill to have


been introduced and pending in the General Assembly. That bill is expected to be different from HB220 (the bill initially introduced


2024) to address the objections raised in the Senate.


The 2025 bill will have to go through the usual legislative process. Itmay change one or morer


through the General Assembly. Therefore, it is impossible to know exactly howy


it will look ifk enactedf years. I am sure some of youf update that reserve study everyy


the bill is anticipated to require all associations with major shared components or significantr a reserve study andy


infrastructure to obtain y five


are asking yourself, what does


“major shared components or significant infrastructure” mean? It is also anticipated that the bill will define those, or similar, terms. It is anticipated that the bill will exempt small associations from having to obtain a reserve study. Further, it is anticipated that the bill will require reserve studies to be disclosed to prospective purchasers. And finally, it is anticipated that the reader willr


know whether anyr


anticipated provisions are included in the bill because it will have been introduced before the publishing of thisf


y of thosef article.


Reserve studies provide boards with important information necessary toy of thef


properly plany for futurer repair andr


is a tool for budgeting and funding reserves. Adequately funded reserves is one aspect of ensuringf


replacement


association’s building. In particular, the reserve study an association’s


financial well-being. Proper planning will preserve property values and increase the attractiveness of the community toy prospective purchasers. Accordingly, CAI asks all members to support the reserve study billy for updatesr study bill,y


and calls to action fromCAI about thet as well as other importantr


legislative session. • Spring 2025 • A Publication of CAI-Illinois Chapter


in 2025. Keep on the lookout reserve


t bills, during the 2025


times as it makes its way into law. That said,


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