This bill amends the Michigan Condominium Act to establish new requirements for condominium associations regarding reserve studies. It mandates that associations conduct an initial reserve study within specific timeframes based on the establishment date of the condominium project. For projects established after the effective date of the amendatory act, the study must be completed no later than 30 days before the transitional control date. For older projects, associations must conduct a reserve study within three years if one has not been done previously or update an existing study. Additionally, subsequent reserve studies or updates must occur at least every five years.

The bill also outlines the qualifications for individuals conducting these reserve studies, requiring them to meet certain professional standards. It stipulates that a reserve fund for major repairs and replacements must be established and maintained by the association, with adequate annual budgeting to cover necessary repairs. Furthermore, the board of directors is required to communicate the reserve funding plan to the association and provide written notice regarding the reserve fund balance as part of the annual budget distribution. The bill includes provisions for the administrator to set minimum standards for reserve funds and defines what constitutes a reserve study.

Statutes affected:
House Introduced Bill: 559.205