SmartProperty® helps Rhode Island condominiums and HOAs plan and fund their reserves. Rhode Island requires reserve budgeting from developers but not from established associations, which leaves the board’s fiduciary duty as the standard to meet.
Rhode Island asks the developer of a new condominium to budget for reserves, then leaves established associations free to decide. That freedom is not a pass on planning.
The initial reserve budget covers items like roofs and roads at turnover. After that, no state rule requires anyone to update it, so the board has to.
If a roof or seawall fails and a special assessment follows, owners can claim negligence and breach of fiduciary duty. The board’s defense is that its decision was prudent, and a study documents it.
Fannie Mae’s reserve minimum rises from 10% to 15% of assessment income for loan applications dated on or after January 4, 2027. Associations below it need a current study and a budget that funds its highest recommended contribution.
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: Providence skyline: Quintin Soloviev, CC BY 4.0. Rhode Island law summary is not legal advice. Confirm your association’s obligations with Rhode Island counsel.