                                 CODE OF VIRGINIA

ANNUAL BUDGET; RESERVES FOR CAPITAL COMPONENTS (§ 55.1-2147)

A. Except to the extent provided in the declaration, the board of directors
shall, prior to the commencement of the fiscal year, make available to lot
owners either (i) the annual budget of the association or (ii) a summary of such
annual budget.

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

   1. Conduct at least once every five years a study to determine the necessity
   and amount of reserves required to repair, replace, and restore the capital
   components as defined in &#xA7; 55.1-2100;

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

   3. Make any adjustments 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 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;
   55.1-2100;

   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 the extent to which the
   association is funding its reserve obligations consistent with the study
   currently in effect; and

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

HISTORY: 2005, c. 436, § 55-471.1; 2019, cc. 33, 44, 712.