The bill amends the "Condominium Law" in Rhode Island by introducing a new section, 34-36.1-3.22, which mandates that condominium associations with structural common elements that would cost at least $20,000 to replace must conduct a reserve study. This reserve study must be certified and dated by a licensed engineer or architect and shall include an itemization of common elements requiring maintenance, repair, or replacement due to anticipated deterioration, along with the anticipated timeline for such work and estimated expenses.

The bill requires that the reserve study be used to establish a separate reserve financial account, distinct from the operating financial account, and mandates that the executive board adopt a proposed budget that includes full funding (100%) for the expenses referenced in the reserve study by July 1, 2027. Additionally, the funds in the reserve account are restricted to the purposes outlined in the reserve study, ensuring they are used solely for future maintenance and repairs. This act will take effect upon passage.

Statutes affected:
5824: 34-36.1-1.02