Virginia Reserve Study
Serving the Northeast
Fredericksburg
1320 Central Park Blvd,
Suite 200,
Fredericksburg VA 22401
Fax 888.316.4587
Email mail@reservestudygroup.com
Virginia Reserve Study Requirements
The Virginia Condominium Act and the Virginia Property Owners Association Act require associations to undertake a reserve study at least once every five (5) years. A review of the reserve study should also conducted at least once annually and adjustments made as needed to maintain reserves.
Associations need to include in their budget, without limitation, the current amount of cash set aside for reserves (repair, replace or restore capital components) and the amount they expect to contribute to the reserve fund for the coming fiscal year. Association budgets also need to include a statement outlining how reserves are being funded and the extent to which it is funding its reserve obligations consistent with their reserve study.
Providing reserve studies throughout VIRGINIA, MARYLAND, NORTH & SOUTH CAROLINA.
Reserve Study Legislation
Condominium Act | Chapter 19
55.1-1965 | Reserves for capital components.
A. Except to the extent provided in the condominium instruments, the executive board shall, prior to the commencement of the fiscal year, make available to unit owners either (i) the annual budget of the unit owners’ association or (ii) a summary of such annual budget.
B. Except to the extent otherwise provided in the condominium instruments the executive board shall:
1. Conduct a study at least once every five years to determine the necessity and amount of reserves required to repair, replace, and restore the capital components as defined in § 55.1-1900;
2. Review the results of that study at least annually to determine if reserves are sufficient; and
3. Make any adjustments the executive board deems necessary to maintain reserves, as appropriate.
C. To the extent that the reserve study conducted in accordance with this section indicates a need to budget for reserves, the unit owners’ association budget shall include:
1. The current estimated replacement cost, estimated remaining life, and estimated useful life of the capital components as defined in § 55.1-1900;
2. As of the beginning of the fiscal year for which the budget is prepared, the current amount of accumulated cash reserves set aside to repair, replace, or restore the capital components and the amount of the expected contribution to the reserve fund for that fiscal year;
3. A statement describing the procedures used for estimation and accumulation of cash reserves pursuant to this section; and
4. A statement of the amount of reserves recommended in the study and the amount of current cash for replacement reserves.
Property Owners' Association Act | Chapter 18
55.1-1826 | Annual budget; reserves for capital components.
A. Except to the extent provided in the declaration, the board of directors shall, prior to the commencement of the fiscal year, make available to lot owners either (i) the annual budget of the association or (ii) a summary of such annual budget.
B. Except to the extent otherwise provided in the declaration and unless the declaration imposes more stringent requirements, the board of directors shall:1. Conduct at least once every five years a study to determine the necessity and amount of reserves required to repair, replace, and restore the capital components as defined in § 55.1-1800;2. Review the results of that study at least annually to determine if reserves are sufficient; and3. Make any adjustments the board of directors deems necessary to maintain reserves, as appropriate.C. To the extent that the reserve study conducted in accordance with this section indicates a need to budget for reserves, the association budget shall include:1. The current estimated replacement cost, estimated remaining life, and estimated useful life of the capital components defined in § 55.1-1800;2. As of the beginning of the fiscal year for which the budget is prepared, the current amount of accumulated cash reserves set aside to repair, replace, or restore capital components and the amount of the expected contribution to the reserve fund for that year;3. A statement describing the procedures used for estimation and accumulation of cash reserves pursuant to this section; and4. A statement of the amount of reserves recommended in the study and the amount of current cash for replacement reserves.
Virginia Reserve Studies
Our team of reserve study professionals work with associations throughout Virginia, North & South Carolina.