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Senate adopts bill requiring 30-year reserve studies for new common‑interest communities
Summary
House Bill 1099 requires developers to commission independent 30-year reserve studies for newly built common‑interest communities and to provide those studies to buyers 24 hours before closing; supporters said the change protects consumers from large surprise assessments.
The Senate adopted House Bill 1099 on March 24, requiring developers of new common‑interest communities to commission an independent 30‑year reserve study before the first unit is sold and to provide that study to prospective buyers at least 24 hours before closing. Sponsors and proponents framed the bill as both a consumer protection and affordability measure.
Sponsor Senator Marshman said the change addresses surprise special assessments that can saddle condo and HOA owners with large unexpected bills for deferred maintenance. "This is an affordability bill as much it is it is a consumer protection bill," Marshman said on the floor, arguing that advance disclosure and reserve planning help protect families who purchase into common‑interest communities.
The bill requires the developer to transfer the reserve study to the homeowners association at turnover and closes a gap in how management companies maintain or transfer association records. The Senate adopted the measure by voice vote.
What’s next: the bill was ordered revised and placed on the calendar for third reading and final passage proceedings as indicated by chamber procedure.
