57-8-7.5 - Reserve analysis -- Reserve fund.
57-8-7.5. Reserve analysis -- Reserve fund.
(1) As used in this section, "reserve analysis" means an analysis to determine:
(a) the need for a reserve fund to accumulate money to cover the cost of repairing,replacing, and restoring common areas and facilities that have a useful life of three years or more,but excluding any cost that can reasonably be funded from the general budget or other funds ofthe association of unit owners; and
(b) the appropriate amount of any reserve fund.
(2) Except as otherwise provided in the declaration, a management committee shall:
(a) (i) subject to Subsection (2)(a)(ii), cause a reserve analysis to be conducted no lessfrequently than every five years; and
(ii) if no reserve analysis has been conducted since March 1, 2008, cause a reserveanalysis to be conducted before July 1, 2012; and
(b) review and, if necessary, update a previously conducted reserve analysis no lessfrequently than every two years.
(3) The management committee may conduct a reserve analysis itself or may engage areliable person or organization, as determined by the management committee, to conduct thereserve analysis.
(4) (a) A management committee may not use money in a reserve fund:
(i) for daily maintenance expenses, unless a majority of the members of the associationof unit owners vote to approve the use of reserve fund money for that purpose; or
(ii) for any purpose other than the purpose for which the reserve fund was established.
(b) A management committee shall maintain a reserve fund separate from other funds ofthe association of unit owners.
(c) This Subsection (4) may not be construed to limit a management committee fromprudently investing money in a reserve fund, subject to any investment constraints imposed bythe declaration.
(5) Subsections (2), (3), and (4) do not apply to an association of unit owners during theperiod of declarant management.
Enacted by Chapter 46, 2010 General Session