WASHINGTON STATE RESERVE STUDY LAWS 

WA STATE RESERVE STUDY LAWS

​As Washington State has passed regulations regarding reserve studies many common interest communities have been struggling to follow them. From how often a reserve study is to be performed to whats required to be in it. This road map covers the basics.

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1. How often does the Law require a Reserve Study be performed?

• The initial reserve study needs to include a site inspection and be performed by a reserve study professional.
  
  
• The reserve study needs to be updated annually. At least every three years the update must include a site inspection and must be performed by a reserve study professional.
  
  
• Associations must follow their governing documents if they have more strict requirements for the reserve study frequency.

Link: RCW 64.34.380

2. What are the different Levels of Reserve Studies?

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• Level I - Full reserve study funding analysis and plan with site inspection
  
  
• Level II - Update with visual site inspection. Component list, measurements and quantities taken from prior study
  
  
• Level III - Update with no visual site inspection. Financial, cost and remaining useful life estimates are updated. No site inspection completed.

Link: RCW 64.34.382​

3. What content is Legally required to be in a Reserve Study?

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• Component List - roofing, painting, decks, siding, plumbing, windows and any other component that costs more than 1% of the annual budget...
  
  
• Component quantities, estimates for the useful life of each component & remaining useful life, and current repair / replacement costs for each component.
  
  
• Disclosures required to be included: reserve account balance, percent funded calculation, special assessments, interest, inflation assumptions and the current reserve account contribution rate.
  
  
• A projected reserve account balance for 30 years without reliance on future unplanned special assessments.

Link: RCW 64.34.382​

4. What Funding Plans are required in a Reserve Study?

• A funding plan to achieve 100% fully funded reserved within 30 years.
  
  
• A Baseline Funding Plan that keeps the reserve account balance above $0 throughout the 30 year time period of the study - without reliance on special assessments.
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• A contribution rate & funding plan recommended by a reserve study professional.

​Link: RCW 64.34.382​​