Washington Reserve Studies
Beginning in 2012 we began to serve Washington with our reserve studies. Since that time we have develop deep relationships and become a part of an incredible community. Because each association is unique with different long term desires, expectations, cultures and economic abilities we work hard to create reports that represent an outcome the board supports, finds achievable and is in the best interest of the association. Washington state law (RCW) have several reserve study requirements which we share with you below.
Since 2008 condominiums within Washington State have been required to fullfill several requirements including obtaining a reserve study, updating the reserve study, and disclosing to the owners information regarding the reserve fund during the budget process.
Reserve fund disclosure requirements per 64.34.308 (4)
64.34.380 Reserve account — Reserve study — Annual update.
64.34.382 Reserve study — Contents.
64.34.384 Reserve account — Withdrawals.
64.34.386 Reserve study — Demand by owners — Study not timely prepared.
64.34.388 Reserve study — Decision making.
64.34.390 Reserve study — Reserve account — Immunity from liability.
64.34.392 Reserve account and study — Exemption — Disclosure
Beginning in 2012 homeowners’ associations have also been required to obtain and update reserve studies as well as provide owners with a reserve fund disclosure as part of the budgeting process.
Reserve fund disclosure requirements per RCW 64.38.025 (4)
64.38.065 Reserve account and study.
64.38.070 Reserve study — Requirements.
64.38.075 Reserve account — Withdrawals.
64.38.080 Reserve study — Demand for preparation and inclusion in budget.
64.38.085 Reserve account and study — Liability.
64.38.090 Reserve study — Exemptions.
Horizontal Property Regimes Act (Old Act Condominiums)
Condominiums created before June 30th 1990 are also required to follow Washington’s Reserve Study legislation per RCW 64.34.380 (4)
Reserve Study Frequency Requirements
With Site Visit
Washington State requires that condominiums and homeowners’ associations have a reserve study with site visit by a reserve study professional every 3 years (Reserve Study Level I & Reserve Study Update Level II)
Without Site Visit
Additionally, a reserve study needs to be updated annually (Reserve Study Level III)
|Year 1||Year 2||Year 3||Year 1||Year 2||Year 3||Year 1|
|Site Visit||No Site Visit||No Site Visit||Site Visit||No Site Visit||No Site Visit||Site Visit|
Washington Reserve Fund Budget Disclosure Requirements
- (4) As part of the summary of the budget provided to all owners, the board of directors shall disclose to the owners:
- (a) The current amount of regular assessments budgeted for contribution to the reserve account, the recommended contribution rate from the reserve study, and the funding plan upon which the recommended contribution rate is based;
- (b) If additional regular or special assessments are scheduled to be imposed, the date the assessments are due, the amount of the assessments per each owner per month or year, and the purpose of the assessments;
- (c) Based upon the most recent reserve study and other information, whether currently projected reserve account balances will be sufficient at the end of each year to meet the association’s obligation for major maintenance, repair, or replacement of reserve components during the next thirty years;
- (d) If reserve account balances are not projected to be sufficient, what additional assessments may be necessary to ensure that sufficient reserve account funds will be available each year during the next thirty years, the approximate dates assessments may be due, and the amount of the assessments per owner per month or year;
- (e) The estimated amount recommended in the reserve account at the end of the current fiscal year based on the most recent reserve study, the projected reserve account cash balance at the end of the current fiscal year, and the percent funded at the date of the latest reserve study;
- (f) The estimated amount recommended in the reserve account based upon the most recent reserve study at the end of each of the next five budget years, the projected reserve account cash balance in each of those years, and the projected percent funded for each of those years; and
- (g) If the funding plan approved by the association is implemented, the projected reserve account cash balance in each of the next five budget years and the percent funded for each of those years.