RCW 64.34.382 - Reserve Study-Contents
(1) A reserve study as described in RCW 64.34.380 is supplemental to the association's operating and maintenance budget. In preparing a reserve study, the association shall estimate the anticipated major maintenance, repair, and replacement costs, whose infrequent and significant nature make them impractical to be included in an annual budget.
(2) A reserve study must include:
(a) A reserve component list, including roofing, painting, paving, decks, siding, plumbing, windows, and any other reserve component that would cost more than one percent of the annual budget for major maintenance, repair, or replacement. If one of these reserve components is not included in the reserve study, the study should provide commentary explaining the basis for its exclusion. The study must also include quantities and estimates for the useful life of each reserve component, remaining useful life of each reserve component, and current repair and replacement cost for each component;
(b) The date of the study and a statement that the study meets the requirements of this section;
(c) The following level of reserve study performed:
(i) Level I: Full reserve study funding analysis and plan;
(ii) Level II: Update with visual site inspection; or
(iii) Level III: Update with no visual site inspection;
(d) The association's reserve account balance;
(e) The percentage of the fully funded balance that the reserve account is funded;
(f) Special assessments already implemented or planned;
(g) Interest and inflation assumptions;
(h) Current reserve account contribution rate;
(i) A recommended reserve account contribution rate, a contribution rate for a full funding plan to achieve one hundred percent fully funded reserves by the end of the thirty-year study period, a baseline funding plan to maintain the reserve balance above zero throughout the thirty-year study period without special assessments, and a contribution rate recommended by a reserve study professional;
(j) A projected reserve account balance for thirty years and a funding plan to pay for projected costs from those reserves without reliance on future unplanned special assessments; and
(k) A statement on whether the reserve study was prepared with the assistance of a reserve study professional.
(3) A reserve study shall include the following disclosure:
"This reserve study should be reviewed carefully. It may not include all common and limited common element components that will require major maintenance, repair, or replacement in future years, and may not include regular contributions to a reserve account for the cost of such maintenance, repair, or replacement. The failure to include a component in a reserve study, or to provide contributions to a reserve account for a component, may, under some circumstances, require you to pay on demand as a special assessment your share of common expenses for the cost of major maintenance, repair, or replacement of a reserve component."
[2011 c 189 § 4; 2008 c 115 § 2.]
RCW 64.34.380 - Reserve Account - Reserve Study - Annual Update
(1) An association is encouraged to establish a reserve account with a financial institution to fund major maintenance, repair, and replacement of common elements, including limited common elements that will require major maintenance, repair, or replacement within thirty years. If the association establishes a reserve account, the account must be in the name of the association. The board of directors is responsible for administering the reserve account.
(2) Unless doing so would impose an unreasonable hardship, an association with significant assets shall prepare and update a reserve study, in accordance with the association's governing documents and RCW64.34.224(1). The initial reserve study must be based upon a visual site inspection conducted by a reserve study professional.
(3) Unless doing so would impose an unreasonable hardship, the association shall update the reserve study annually. At least every three years, an updated reserve study must be prepared and based upon a visual site inspection conducted by a reserve study professional.
(4) This section and RCW 64.34.382 through 64.34.392 apply to condominiums governed by chapter 64.32 RCW or this chapter and intended in whole or in part for residential purposes. These sections do not apply to condominiums consisting solely of units that are restricted in the declaration to nonresidential use. An association's governing documents may contain stricter requirements.
[2011 c 189 § 3; 2008 c 115 § 1.]
Washington State Revised Code of Washington - Reserve Study - Reserve Account - Disclosure
Condominiums within Washington State have been required to adhere to numerous code requirements including conducting a reserve study and disclosing reserve study results & assessments on an annual basis as part of the budgeting approval 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
Washington State RCW laws were enacted in 2012 for Homeowner Associations in regards to reserve studies and disclosure to the community membership.
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.