California Reserve Studies
California law is codified as the Davis-Stirling Common Interest Development Act. Sections 1365 and 1365.2.5 set the disclosure requirements and specific format of certain disclosures. Section 1365.5 establishes performance standards. These standards require a visual site inspection every three years. Since the disclosure standards require new information to be distributed to members as part of the annual budget, it is virtually impossible for the association to comply with the disclosure requirements unless the association performs an update without site inspections in the two "off" years.
California’s reserve study disclosure requirements are unique; they differ from those in other states. The requirements are set forth in the Davis – Stirling Common Interest Development Act, Civil Code Section 1365 and its sub parts. The Code also sets forth certain performance requirements for board members, and requires a site inspection every three years.
California has established reserve study performance and disclosure requirements, but has not established any minimum funding requirements. The law does require disclosure of the funding plan, and also whether or no any special assessments are planned as any part of the 30-year funding plan.
Facilities Advisors, Inc. has been preparing reserve studies in California since 1982. We have prepared numerous reserve studies for all types of associations; condominiums, planned developments, timeshare associations, and cooperatives. Our reserve study reports are unique - they are designed to meet your statutory requirements, to serve as a maintenance plan, and the reports and disclosures are designed to save you time. You save time in budget preparation because we prepare the reserve disclosures for you. Our unique reserve study comparison exhibit also saves you time by showing you where our current report differs from the previous report, no matter who prepared the prior report. It helps report users understand and evaluate what has changed since the prior report was issued.
