SmartProperty® helps Michigan condominium associations go beyond the 10% minimum with a plan built on their actual buildings. The state requires a reserve fund but not a study, and a study is how a board shows the minimum is enough or isn’t.
This applies to condominiums under the Michigan Condominium Act. Our guide covers condos only, not other HOAs.
Water in cracked concrete and pavement expands as it freezes, and de-icing salts attack steel in parking structures and balconies. A study calibrates useful lives to those conditions; a flat percentage can’t.
Because the bylaws themselves warn the 10% may be inadequate, owners can argue a board that did no analysis was negligent. A study is the board’s answer.
Michigan’s 10% minimum alone no longer keeps condo units eligible for conventional financing once Fannie Mae’s 15% minimum applies to loans dated on or after January 4, 2027, unless the budget funds the highest plan in a current study.
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: Detroit skyline: TheWxResearcher, CC0. Michigan law summary is not legal advice. Confirm your association’s obligations with Michigan counsel.