AB 2050 (2026)

§ 5550

This act was the only one to amend this section in that window.

1. (a)amendedAt least once every three years, the board association shall cause to be conducted a reasonably … one-half of the gross budget of the association, excluding the association’s reserve account for that period. association. The board association shall review and update this study, or cause it to be reviewed, study annually and shall consider and implement necessary adjustments to the board’s analysis association’s funding of the reserve account requirements as a result of that review.
2. (b)(4)amendedAn estimate Cost of the total annual contribution necessary to defray the cost to repair, replace, restore, replacement, restoration or maintain maintenance of the components identified in paragraph (1) during and at the end of their useful life, after subtracting total reserve funds as of the date of the study. report required in Section 5551.
3. (b)(5)amendedA An estimate of the total annual reserve funding plan that indicates how account transfer necessary to defray the association plans cost to fund repair, replace, restore, or maintain the contribution components identified in paragraph (4) to meet (1) during and at the association’s obligation for end of their useful life, after subtracting total reserve funds as of the repair and replacement date of all major components with an expected remaining life of 30 years or less, not including those components that the board has determined will not be replaced or repaired. study.
4. (b)(6)addedA reserve funding plan that indicates how the association plans to fund the reserve account transfer identified in paragraph (5) to meet the association’s obligation for the repair and replacement of all major components with an expected remaining life of 30 years or less, not including those components that the board has determined will not be replaced or repaired.
5. (b)(7)addedThe minimum reserve contribution level to prevent the projected association reserve account balance from falling below zero over the following 30 years.
6. (b)(8)addedA statement informing the association that, beginning January 1, 2032, state law will require an association to take certain actions if the association projects the reserve account balance to fall below zero over a 30-year period, including transferring a minimum of 15 percent of its gross annual budget to the reserve account and, under specified conditions, levying a reserve funding special assessment, as prescribed.
7. (c)amendedFor purposes of this section, “major components” includes includes, but is not limited to, exterior elevated elements defined and inspected pursuant to Section 5551, and gas, water, and electrical service to the …
8. (d)addedThis section shall become operative on January 1, 2032.