SmartProperty® helps Massachusetts condominiums plan and fund an “adequate” replacement reserve, which Chapter 183A requires but never defines. A professional study gives trustees the number and the proof behind it.
Massachusetts mandates the fund but sets no percentage, dollar amount or funding model. The burden of showing adequacy falls on the board.
Converted mills, brownstones and mid-century complexes face freeze-thaw cycles, coastal salt and heavy snow loads. Those conditions accelerate wear on roofs, masonry and paving.
Fannie Mae and Freddie Mac effectively require a professional study for a condo to stay financeable. Their reserve minimum rises from 10% to 15% of assessment income for loan applications dated on or after January 4, 2027.
Owners can vote to modify reserve funding, but doing so announces deferred maintenance to buyers and lenders and can make units ineligible for conventional financing.
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: Boston skyline from Cambridge: 4300streetcar, CC BY 4.0. Massachusetts law summary is not legal advice. Confirm your association’s obligations with Massachusetts counsel.