Many HOA clients often ask if plumbing and piping should be included in a reserve study. Some may say no because CAI national reserve study standards state that a component must have a predictable remaining life to be included in a reserve study. It’s true that trying to predict exactly when plumbing will need to [...]
There are no official standards for how hoa’s must invest reserve funds. California Civil Code does state “The board shall exercise prudent fiscal management in maintaining the integrity of the reserve account…” It is the boards fiduciary duty to act in good faith and in the best interest of the association when investing reserve funds. [...]
Many clients often ask me if the board and/or property manger input should be used in preparing a reserve study. My answer is absolutely. The board/manager are very valuable sources of information for any reserve study provider. The best way to get an accurate reserve study is to combine the knowledge and experience of a [...]
The Davis-Stirling Act has been completely reorganized effective January 1st, 2014. The majority of the changes are simply just renumbering of the sections. There are essentially no changes to the reserve study requirements. The Civil Code section numbers have changed. Most of the former reserve study requirements that were formerly located in section 1365 are [...]
