SmartProperty® helps Minnesota common interest communities keep reserves adequate and re-evaluate them on schedule. The law requires adequate reserves and a review at least every third year, and a reserve study is how a board does both.
Section 515B.3-1141 of the Minnesota Common Interest Ownership Act applies to most common interest communities created after June 1, 1994. It doesn’t use the words “reserve study,” but the duty it creates points to one.
Adequacy has to be reevaluated at least every third year, so a study from several years ago isn’t a defense. A Level II update with a site visit on that cadence keeps the board current.
Freeze-thaw pavement damage, ice dams on roofs, de-icing salt on concrete and long heating seasons on boilers all shorten useful life. A study that ignores them understates what the reserve needs.
The resale certificate discloses reserves to every buyer, and Fannie Mae’s 15% reserve minimum applies to condo loans dated on or after January 4, 2027.
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: Minneapolis skyline: Guywelch2000, CC BY 4.0. Minnesota law summary is not legal advice. Confirm your association’s obligations with Minnesota counsel.