A new legislative bill, SB 0863, has been introduced that would require all board members of a unit owners’ association within the state of Tennessee to conduct a reserve study on or before January 1, 2024, if they have not had one performed since January 1, 2023. The bill looks to amend TCA Title 66, Chapter 27, and will require that a board have their reserve study updated within five years from the date of the last study and every five years thereafter.
The reserve study will help associations assess the condition of and plan for repair and maintenance of the elements critical to structural integrity and safety. Common elements critical to the structural integrity and safety include, roof, fire protection, plumbing and electrical systems, waterproofing, exterior painting, balcony, elevator, or any other item with a deferred maintenance expense or replacement cost that exceeds $10,000.
The purpose of a reserve study is to inform association members of the amount of funds needed in a fully funded repair and replacement reserves, minimizing the need for special assessments. We will keep an eye on the bill as it progresses through the usual channels and update this post as information comes to hand. Homeowner Associations (HOAs) and condominiums within the state should monitor the progress of the bill closely.