                                 CODE OF VIRGINIA

ANNUAL BUDGET; RESERVE STUDY; RESERVES FOR CAPITAL COMPONENTS (§ 55.1-1965)

A. Except to the extent provided in the condominium instruments, the executive
board shall, prior to the commencement of the fiscal year, make available to
unit owners either (i) the annual budget of the unit owners&#8217; association
or (ii) a summary of such annual budget.

B. Except to the extent otherwise provided in the condominium instruments, the
executive board shall:

   1. Conduct a study at least once every five years to determine the necessity
   and amount of reserves required to repair, replace, and restore the capital
   components as defined in &#xA7; 55.1-1900;

   2. Review the results of that study at least annually to determine if reserves
   are sufficient; and

   3. Make any adjustments to the annual budget and annual assessment the
   executive board deems necessary to maintain reserves, as appropriate.

C. To the extent that the reserve study conducted in accordance with this
section indicates a need to budget for reserves, the unit owners&#8217;
association budget shall include:

   1. The current estimated replacement cost, estimated remaining life, and
   estimated useful life of the capital components as defined in &#xA7;
   55.1-1900;

   2. As of the beginning of the fiscal year for which the budget is prepared,
   the current amount of accumulated cash reserves set aside to repair, replace,
   or restore the capital components and the amount of the expected contribution
   to the reserve fund for that fiscal year;

   3. A statement describing the procedures used for estimation and accumulation
   of cash reserves pursuant to this section; and

   4. A statement of the amount of reserves recommended in the study and the
   amount of current cash for replacement reserves.

D. The executive board shall have the discretion to meet repair and replacement
requirements through replacement reserves, additional assessments, or borrowed
funds.

HISTORY: 2002, c. 459, § 55-79.83:1; 2019, cc. 33, 44, 712; 2024, c. 324.