SmartProperty® helps New York HOAs, co-ops and condominiums plan and fund their reserves. State law doesn’t require a study, but the board’s duty of care and the business judgment rule depend on informed decisions. A study is how you document them.
Most New York associations are formed under the Not-for-Profit Corporation Law, and their reserves, or lack of them, often start in the developer’s offering plan.
When a roof or other predictable replacement forces a large assessment, owners often allege the board failed to plan. A study is the board’s record that it investigated its long-term needs.
Lender questionnaires ask about reserves and deferred maintenance, and a building that falls short can be listed as non-warrantable. Fannie Mae’s 15% reserve minimum applies to condo loans dated on or after January 4, 2027, or the budget must fund a current study’s highest recommended contribution.
Some offering plans state there is no special advanced reserve fund. That’s a starting point, not a plan, and the board still has to decide how to fund the building’s future repairs.
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: Manhattan skyline: Jakub Hałun, CC BY 4.0. New York law summary is not legal advice. Confirm your association’s obligations with New York counsel.