What is a reserve study?
A reserve study is a comprehensive analysis designed to outline the long-term capital expenses a building or community may face. This assessment typically covers the lifespan of major components like roofs, elevators, and shared amenities. By evaluating the current state of these components and projecting their future repair or replacement costs, a reserve study helps condo associations to prepare financially, ensuring they can address significant expenses without imposing sudden, unexpected costs on residents. Click here for more formalized information on reserve study details.
What buildings does this law affect?
The Tennessee Reserve Study Law specifically targets buildings under the governance of a board of directors overseeing common elements. If these elements have a replacement cost exceeding $10,000 and the building has not undergone a reserve study since January 1, 2020, it falls under this law’s purview.
What do condo associations need to do to comply?
To comply with the law, condo associations must undertake a thorough reserve study. This will help plan for future significant repair or replacement costs. After completing the study, establish a dedicated reserve fund to allocate enough money to cover the projected expenses. Additionally, regular updates to the reserve study are advisable to account for changing conditions or unexpected costs.
What is the deadline for this law?
The latest legislation dictates that associations are required to be in compliance on or before January 1, 2025.
What Triggered a Need for this Law?
The need for such regulatory measures began with the tragedy at the Champlain Towers South Condominium incident in Florida in 2021. Regions like Florida have since rolled out similar laws to prevent similar catastrophes.
Understanding the Tennessee Reserve Law
The Tennessee Reserve Law brings fresh challenges and new opportunities for condo associations. At BECI, we’ve recognized a mix of reactions: while some associations are proactively adapting, others are grappling with the nuances of this regulation. This transitional phase may be daunting, but condos can achieve financial and legal stability with proper guidance.
Why Choose BECI for Your Reserve Study?
Not all firms offering reserve studies are the same. Without the rich experience that companies like ours bring, evaluations can often be grounded more in theory than reality.
At BECI, we’re not just consultants but dedicated partners in ensuring your building’s compliance and longevity. Our company roots are in Florida, a state abundant with condos and familiar with complex legislation like this.
We also work hard to identify and grade areas of concern so you know how to prioritize projects. In the case of major projects, if you choose to continue your relationship with us, we can go further to develop a scope of work and bid documents you can use to find a restoration contractor to perform the scope. We can go so far as to administer the contract and perform quality assurance during the performance of work.
When you choose BECI for your reserve study, you choose a legacy of expertise. We understand that no two condo associations are the same, and our approach reflects this belief. We don’t believe in one-size-fits-all solutions. Instead, we provide tailored options honed by years of hands-on experience, ensuring compliance and genuine financial and infrastructural foresight.
The Tennessee Reserve Law is not just another regulation; it’s a framework for future-proofing condo associations. And with BECI by your side, navigating this framework becomes a streamlined, insightful process, securing both the present and the future of your condo association.