ORS 94.595
Reserve account for maintaining, repairing and replacing common property

  • reserve study
  • maintenance plan

(1)

The declarant, on behalf of a homeowners association, shall:

(a)

Conduct an initial reserve study as described in subsection (3) of this section;

(b)

Prepare an initial maintenance plan as described in subsection (4) of this section; and

(c)

Establish a reserve account as provided in subsection (2) of this section.

(2)

Intentionally left blank —Ed.

(a)

A homeowners association shall establish a reserve account to fund major maintenance, repair or replacement of all items of common property which will normally require major maintenance, repair or replacement, in whole or in part, in more than one and less than 30 years, for exterior painting if the common property includes exterior painted surfaces, for other items, whether or not involving common property, if the association has responsibility to maintain the items and for other items required by the declaration or bylaws. The reserve account need not include reserves for those items:

(A)

That can reasonably be funded from the general budget or other funds or accounts of the association; or

(B)

For which one or more, but less than all, owners are responsible for maintenance and replacement under the provisions of the declaration or bylaws.

(b)

The reserve account shall be established in the name of the homeowners association. The association is responsible for administering the account and for making periodic payments into the account.

(c)

The reserve portion of the initial assessment determined by the declarant shall be based on:

(A)

The reserve study described in subsection (3) of this section; or

(B)

Other reliable information.

(d)

A reserve account established under this section must be funded by assessments against the individual lots for which the reserves are established.

(e)

Unless the declaration provides otherwise, the assessments under this subsection begin accruing for all lots from the date the first lot is conveyed.

(3)

Intentionally left blank —Ed.

(a)

The board of directors of the association shall annually determine the reserve account requirements by conducting a reserve study or reviewing and updating an existing study using the following information:

(A)

The starting balance of the reserve account for the current fiscal year;

(B)

The estimated remaining useful life of each item for which reserves are or will be established, as of the date of the study or review;

(C)

The estimated cost of maintenance and repair and replacement at the end of the useful life of each item for which reserves are or will be established;

(D)

The rate of inflation during the current fiscal year; and

(E)

Returns on any invested reserves or investments.

(b)

Subject to subsection (8) of this section, after review of the reserve study or reserve study update, the board of directors may, without any action by owners:

(A)

Adjust the amount of payments as indicated by the study or update; and

(B)

Provide for other reserve items that the board of directors, in its discretion, may deem appropriate.

(c)

The reserve study shall:

(A)

Identify all items for which reserves are or will be established;

(B)

Include the estimated remaining useful life of each item, as of the date of the reserve study; and

(C)

Include for each item, as applicable, an estimated cost of maintenance and repair and replacement at the end of the item’s useful life.

(4)

Intentionally left blank —Ed.

(a)

The board of directors shall prepare a maintenance plan for the maintenance, repair and replacement of all property for which the association has maintenance, repair or replacement responsibility under the declaration or bylaws or ORS 94.550 (Definitions for ORS 94.550 to 94.783) to 94.783 (When certain administrative provisions apply). The maintenance plan shall:

(A)

Describe the maintenance, repair and replacement to be conducted;

(B)

Include a schedule for the maintenance, repair and replacement;

(C)

Be appropriate for the size and complexity of the maintenance, repair and replacement responsibility of the association; and

(D)

Address issues that include but are not limited to warranties and the useful life of the items for which the association has maintenance, repair and replacement responsibility.

(b)

The board of directors shall review and update the maintenance plan described under this subsection as necessary.

(5)

Intentionally left blank —Ed.

(a)

If the declaration or bylaws require a reserve account, the reserve study requirements of subsection (3) of this section and the maintenance plan requirements of subsection (4) of this section first apply to the association of a subdivision that meets the definition of a planned community under ORS 94.550 (Definitions for ORS 94.550 to 94.783) and is recorded prior to October 23, 1999, when:

(A)

The board of directors adopts a resolution in compliance with the bylaws that applies the requirements of subsections (3) and (4) of this section to the association; or

(B)

A petition signed by a majority of owners is submitted to the board of directors mandating that the requirements of subsections (3) and (4) of this section apply to the association.

(b)

A reserve study and maintenance plan shall be completed within one year of adoption of the resolution or submission of the petition to the board of directors.

(6)

Intentionally left blank —Ed.

(a)

Except as provided in paragraph (b) of this subsection, the reserve account may be used only for the purposes for which reserves have been established and is to be kept separate from other funds.

(b)

After the individual lot owners have assumed responsibility for administration of the planned community under ORS 94.616 (Turnover meeting), if the board of directors has adopted a resolution, which may be an annual continuing resolution, authorizing the borrowing of funds:

(A)

The board of directors may borrow funds from the reserve account to meet high seasonal demands on the regular operating funds or to meet unexpected increases in expenses.

(B)

Not later than the adoption of the budget for the following year, the board of directors shall adopt by resolution a written payment plan providing for repayment of the borrowed funds within a reasonable period.

(7)

The reserve account is subject to the requirements and restrictions of ORS 94.670 (Association duty to keep documents and records) and any additional restrictions or requirements imposed by the declaration, bylaws or rules of the homeowners association.

(8)

Intentionally left blank —Ed.

(a)

Except as provided under paragraph (b) of this subsection, unless the board of directors under subsection (3) of this section determines that the reserve account will be adequately funded for the following year, the board of directors or the owners may not vote to eliminate funding a reserve account required under this section or under the declaration or bylaws.

(b)

Following the turnover meeting described in ORS 94.609 (Notice of meeting to turn over administrative responsibility), on an annual basis, the board of directors, with the approval of all owners, may elect not to fund the reserve account for the following year.

(9)

Assessments paid into the reserve account are the property of the association and are not refundable to sellers or owners of lots. [1981 c.782 §15; 1999 c.677 §7; 2001 c.756 §10; 2003 c.569 §8; 2005 c.543 §1; 2007 c.409 §7; 2009 c.641 §4; 2017 c.111 §1]
(Declarant Control; Turnover of Administrative Control)

Source: Section 94.595 — Reserve account for maintaining, repairing and replacing common property; reserve study; maintenance plan, https://www.­oregonlegislature.­gov/bills_laws/ors/ors094.­html.

94.504
Development agreements
94.508
Approval by governing body
94.513
Procedures on consideration and approval
94.518
Application of local government law and policies to agreement
94.522
Amendment or cancellation of agreement
94.528
Recording
94.531
Severable development interest in real property
94.534
Policy on transferable development credit systems
94.536
Definitions for ORS 94.536 and 94.538
94.538
Transferable development credit systems
94.550
Definitions for ORS 94.550 to 94.783
94.560
Legislative findings
94.565
Planned community to be created under ORS 94.550 to 94.783
94.570
Applicability of ORS 94.550 to 94.783
94.572
Applicability of certain provisions of ORS 94.550 to 94.783 to Class I or Class II planned communities
94.573
Class I or Class II planned community option to amend governing documents to conform to statute
94.574
Procedure for formation of homeowners association by Class I or Class II planned community
94.575
Applicability of subdivision law
94.576
Class I or Class II planned community option to be subject to provisions of ORS 94.550 to 94.783
94.577
Recording amended governing documents
94.580
Declaration
94.585
Authority to amend declaration and initial bylaws to comply with federal or state laws
94.590
Amendment of declaration by owners
94.595
Reserve account for maintaining, repairing and replacing common property
94.600
Declarant control of association
94.604
Transitional advisory committee
94.609
Notice of meeting to turn over administrative responsibility
94.616
Turnover meeting
94.621
Rights of declarant following turnover meeting
94.622
Obligations and liabilities arising from transfer of special declarant rights
94.623
Acquisition of special declarant rights by successor declarant
94.625
Formation of homeowners association
94.626
Corporate dissolution of association
94.630
Powers of association
94.635
Association bylaws
94.639
Criteria for board of directors membership
94.640
Association board of directors
94.641
Assent of director to board action
94.642
Receivership for failure of homeowners association to fill vacancies on board of directors
94.644
Meetings of board of directors
94.645
Adoption of annual budget
94.647
Use of written ballot for approving or rejecting matters subject to meeting of association members
94.650
Meetings of lot owners
94.652
Electronic notice to owner or director
94.655
Quorum for association meetings
94.657
Rules of order
94.658
Voting or granting consent
94.660
Method of voting or consenting
94.661
Electronic ballot
94.662
Notice to lot owners of intent of association to commence judicial or administrative proceeding
94.665
Authority of association to sell, transfer, convey or encumber common property
94.667
Recording association information with county clerk
94.670
Association duty to keep documents and records
94.671
Application of ORS 94.670 (5)
94.673
When compliance with specified provisions of ORS 94.640 and 94.670 required
94.675
Insurance for common property
94.676
Insurance deductible for certain planned communities
94.677
Election to have ORS 94.645, 94.655 and 94.675 apply
94.680
Blanket all-risk insurance
94.685
Specification of insurance for individual lots
94.690
Terms of insurance under ORS 94.680
94.695
Authority to delegate association powers to master association
94.700
Duration and termination of initial management agreements and service and employment contracts
94.704
Assessment and payment of common expenses
94.709
Liens against lots
94.712
Lot owner personally liable for assessment
94.716
Lien against two or more lots
94.719
Lien foreclosure
94.723
Common expenses
94.728
Taxation of lots and common property
94.733
Easements held by owner of lot and by declarant
94.760
Promotional material showing possible improvements
94.761
Legislative findings regarding electric vehicle charging stations
94.762
Electric vehicle charging stations
94.763
Association use of pesticides on lots
94.764
Changes or actions that require approval or consent of mortgagee
94.770
Application of rule against perpetuities
94.775
Judicial partition of lots
94.776
Development and division of lots
94.777
Compliance with bylaws and other restrictions required
94.778
Prohibition against installation of solar panels void and unenforceable
94.779
Unenforceability of certain irrigation requirements and restrictions on family child care
94.780
Remedies
94.783
When certain administrative provisions apply
94.785
Short title
94.803
Definitions for ORS 94.803 and 94.807 to 94.945
94.806
Legislative finding
94.807
Application
94.808
Managing entity as taxpayer
94.809
Valuation of timeshare property
94.811
When owners of planned community, condominium or subdivision may prohibit timeshare plan
94.813
Character of timeshare estates
94.816
Partition prohibited
94.818
Recording of timeshare instrument
94.821
Content of timeshare instrument
94.823
Notice of intent to sell timeshares
94.826
Information on exchange program
94.828
Public report on plan
94.829
Sale not allowed before issuance of public report
94.831
Filing fees
94.833
Sale of timeshare plan located out-of-state
94.836
Cancellation of purchase within five days
94.839
Notice of cancellation right
94.841
Waiver of rights void
94.843
Limits on developer right to transfer
94.846
Designation of managing entity
94.848
How managing entity of developer terminated
94.853
Payment of common expenses
94.856
Assessment of common expenses as lien
94.858
Owners’ association
94.863
Developer’s duty to managing entity
94.867
Judicial declaration of failure in management
94.869
Insurance coverage
94.871
When purchase money agreement prohibited
94.873
Escrow account
94.876
Requirements for closing escrow
94.878
Duties of escrow agent
94.881
Who may serve as escrow agent
94.885
Rights of lienholder
94.890
Lien payment trust
94.895
Trust irrevocable without alternative arrangement
94.900
Alternative to lien payment trust
94.905
Surety bond
94.915
Inspection of records
94.920
Consent to service by out-of-state developer
94.925
Civil penalty
94.930
Commissioner order
94.940
False practices prohibited
94.945
Advertising regulation
94.953
Definitions for ORS 94.953 to 94.989
94.956
Registration required to sell membership camping contract
94.959
Application for registration
94.962
Exemptions from registration
94.965
Effective date of registration
94.968
Denial, suspension and revocation of registration
94.971
Fee for registration or amendment of an offer or sale of membership camping contract
94.974
Written disclosures required
94.975
False practices prohibited
94.976
Advertising regulation
94.977
Registration as salesperson or broker
94.980
Application for registration
94.983
Cancellation of contract by purchaser
94.986
Requirements for sale of membership camping contract
94.987
Judicial declaration of failure in management
94.989
Interpretation of membership camping contracts
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