ORS 100.175Reserve account for maintaining, repairing and replacing common elements

ORS 100.175 Reserve account for maintaining, repairing and replacing common elements reserve study information required maintenance plan Text Annotations (1) The declarant, on behalf of the association of unit owners, shall: (a) Conduct an initial reserve study as described in subsection (3) of this section; (b) Prepare an initial maintenance plan as described in subsection (4) of this section; and (c) Establish a reserve account if required under subsection (2) of this section. (2) Intentionally left blank —Ed. (a) An association of unit owners shall establish a reserve account to fund: (A) Major maintenance, repair or replacement of those common elements or other property to be maintained by the association under the declaration or bylaws, all or part of which will normally require major maintenance, repair or replacement in more than one and less than 30 years; (B) Exterior painting if the common elements or other property required to be maintained by the association under the declaration or bylaws include exterior painted surfaces; and (C) Any other items for which a reserve is required under the declaration or bylaws. (b) The reserve account required under paragraph (a) of this subsection need not include: (A) Items that can reasonably be funded from the general budget or other funds or accounts of the association; or (B) A reserve for limited common elements for which maintenance and replacement are the responsibility of one or more, but less than all, unit owners under the provisions of the declaration or bylaws. (c) The reserve account must be established in the name of the association of unit owners. The association is responsible for administering the account and for making periodic payments into the account. (d) The reserve portion of the initial assessment determined by the declarant must be based on: (A) The reserve study described in subsection (3) of this section; (B) In the case of a conversion condominium, the statement described in ORS 100.655 (Disclosure statement) (1)(h); or (C) Other reliable information. (e) The reserve account must be funded by assessments against the individual units for the purposes for which the reserve account is established. (f) The assessment under this subsection accrues from the time of the conveyance of the first individual unit assessed as provided in ORS 100.530 (Allocation of common profits and expenses) . (3) Intentionally left blank —Ed. (a) The board of directors of the association shall annually determine the reserve account requirements by conducting a reserve study or reviewing and updating an existing study using the following information: (A) The starting balance of the reserve account for the current fiscal year; (B) The estimated remaining useful life of each item for which reserves are or will be established, as of the date of the study or review; (C) The estimated cost of maintenance and repair and replacement at the end of the useful life of each item for which reserves are or will be established; (D) The rate of inflation during the current fiscal year; and (E) Returns on any invested …

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