Facilities Advisors Inc.

Your source for Reserve Studies

  • Increase font size
  • Default font size
  • Decrease font size

Arizona Reserve Studies

The state of Arizona has adopted specific statutes related to reserve studies, which are set forth in section 33.1255 of the Arizona Condominium Act.

The Arizona Condominium Act (A.R.S. 33-1201, et. seq.) generally state the distribution policy of annual assessments for common expenses.  Common expenses are defined as including any allocations to reserves. There is no provision in the Condominium Act that requires that a reserve study to be prepared by the association, and contains no requirements as to how the reserves are to be calculated.
Arizona has no statutory provisions requiring a planned community association to prepare a reserve study or to fund reserves.
Arizona does have a statutory requirement for both condominiums and planned communities that requires certain disclosures upon the resale of a unit /lot within an association.  Specifically, the purchaser must receive a statement regarding the total amount of money held by the association as reserves. The purchaser must also be given a copy of the most recent reserve study of the association, if one exists.

The Arizona Condominium Act (A.R.S. 33-1201 through 33-1270) generally states the distribution policy of annual assessments for common expenses.  Common expenses are defined as including any allocations to reserves (A.R.S. 33-1255-c-1). There is no provision in the Condominium Act that requires that a reserve study to be prepared by the association, and contains no requirements as to how the reserves are to be calculated.

Arizona has no statutory provisions requiring a planned community association to prepare a reserve study or to fund reserves.

Arizona does have a statutory requirement for both condominiums and planned communities that requires certain disclosures upon the resale of a unit /lot within an association (A.R.S. 33-1260).  Specifically, the purchaser must be provided with a statement regarding the total amount of money held by the association as reserves. The purchaser must also be provided with a copy of the most recent reserve study of the association, if one exists.