SmartProperty® helps Louisiana HOAs and condominiums plan and fund their reserves. State law doesn’t require a study or a minimum balance, but newer HOAs now have to explain the basis for their reserves. A reserve study gives the board that basis.
The Condominium Act authorizes reserve budgets without requiring them. The 2024 Planned Community Act adds budget transparency and owner votes for HOAs formed on or after January 1, 2025.
Louisiana homeowners can challenge assessments for foreseeable repairs the board failed to plan for. A study is the board’s evidence that its reserve decisions were informed and prudent.
Under the Planned Community Act, a board has to state the basis on which reserves are calculated and funded. A professional study is a sound basis, and a guess is a hard thing to defend.
In HOAs covered by the Planned Community Act, a special assessment takes an owner ratification vote, which makes it an unreliable way to pay for predictable repairs. Funded reserves avoid the vote.
A site-inspected study to start, then updates as costs and conditions change, so the board always has a current plan.
The Living Reserve Study® updates as projects are completed and costs change, so your plan is ready for the next update or budget.
Model higher contributions, special assessments, loans or lines of credit side by side before you take a recommendation to owners.
Atlas shows the cost data and useful-life assumptions behind every figure, so boards can answer owner questions with confidence.
See how the Living Reserve Study® works for your community, or tell us about your association and we’ll put together a proposal.
Photo via Wikimedia Commons: New Orleans: Aropasa, CC0. Louisiana law summary is not legal advice. Confirm your association’s obligations with Louisiana counsel.