ORS 100.175
Reserve account for maintaining, repairing and replacing common elements

  • reserve study
  • information required
  • maintenance plan

(1)

The declarant, on behalf of the association of unit owners, 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 if required under subsection (2) of this section.

(2)

Intentionally left blank —Ed.

(a)

An association of unit owners shall establish a reserve account to fund:

(A)

Major maintenance, repair or replacement of those common elements or other property to be maintained by the association under the declaration or bylaws, all or part of which will normally require major maintenance, repair or replacement in more than one and less than 30 years;

(B)

Exterior painting if the common elements or other property required to be maintained by the association under the declaration or bylaws include exterior painted surfaces; and

(C)

Any other items for which a reserve is required under the declaration or bylaws.

(b)

The reserve account required under paragraph (a) of this subsection need not include:

(A)

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

(B)

A reserve for limited common elements for which maintenance and replacement are the responsibility of one or more, but less than all, unit owners under the provisions of the declaration or bylaws.

(c)

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

(d)

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

(A)

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

(B)

In the case of a conversion condominium, the statement described in ORS 100.655 (Disclosure statement) (1)(h); or

(C)

Other reliable information.

(e)

The reserve account must be funded by assessments against the individual units for the purposes for which the reserve account is established.

(f)

The assessment under this subsection accrues from the time of the conveyance of the first individual unit assessed as provided in ORS 100.530 (Allocation of common profits and expenses).

(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 (10) of this section, after a review of the reserve study or the reserve study update, the board may, without any action by the unit owners:

(A)

Adjust the amount of payments in accordance with the study or review; and

(B)

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

(c)

The reserve study must:

(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 this chapter. The maintenance plan must:

(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 or 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)

Except as provided in paragraph (b) of this subsection, the reserve study requirements under subsection (3) of this section and the maintenance plan requirements under subsection (4) of this section do not apply to a condominium consisting of one or two units, excluding units used for parking, storage or other uses ancillary to a unit:

(A)

After the sale of the first unit to a person other than a successor declarant, if the condominium is created on or after September 27, 2007; or

(B)

If the condominium was created before September 27, 2007, notwithstanding any requirement in the declaration or bylaws.

(b)

The reserve study requirements under subsection (3) of this section and the maintenance plan requirements under subsection (4) of this section apply to a flexible condominium or a staged condominium created on or after September 27, 2007, if the condominium might in the future consist of more than two units.

(6)

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 condominium recorded prior to October 23, 1999:

(A)

Upon adoption of a resolution by the board of directors in accordance with the bylaws providing that the requirements of subsections (3) and (4) of this section apply to the association; or

(B)

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

(b)

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

(7)

Intentionally left blank —Ed.

(a)

Except as provided in paragraph (b) of this subsection, the reserve account is to 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 unit owners have assumed administrative responsibility for the association under ORS 100.210 (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.

(8)

The reserve account is subject to the requirements and restrictions of ORS 100.480 (Maintaining documents and records) and any additional requirements or restrictions imposed by the declaration, bylaws or rules of the association of unit owners.

(9)

Assessments paid into the reserve account are the property of the association of unit owners and are not refundable to sellers of units.

(10)

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 100.210 (Turnover meeting), 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. [Formerly 94.072; 1997 c.816 §7; 1999 c.677 §44; 2001 c.756 §34; 2003 c.569 §27; 2005 c.543 §2; 2007 c.409 §23; 2009 c.641 §23; 2011 c.532 §7; 2017 c.111 §3; 2019 c.69 §41]

Source: Section 100.175 — Reserve account for maintaining, repairing and replacing common elements; reserve study; information required; maintenance plan, https://www.­oregonlegislature.­gov/bills_laws/ors/ors100.­html.

100.005
Definitions
100.010
Short title
100.015
Rules
100.020
Condominium provisions
100.022
Application of zoning, subdivision, building code or real property law to condominium
100.023
Void and unenforceable provisions of condominium governing document
100.025
Rule against perpetuities
100.100
Property submitted to unit ownership by declaration
100.102
Leasehold condominium submitted to unit ownership
100.103
Effect of submission of leasehold condominium to unit ownership
100.105
Contents of declaration
100.110
Approval of declaration, supplemental declaration or amendment required
100.115
Recording declaration and plat
100.116
Plat amendment
100.117
Correction amendment to declaration or bylaws
100.118
Correction amendment to condominium plat
100.119
Restated declaration
100.120
Supplemental declaration and plat required to annex additional property or reclassify variable property
100.122
Declaration prevails over inconsistent provisions of bylaws or articles of incorporation
100.123
Authority to amend declaration or bylaws to comply with federal or state law
100.125
Annexation of additional property
100.130
Relocation of unit boundaries and common elements by amendment to declaration
100.135
Amendments to declaration
100.140
Temporary relocation of floating structure
100.150
Declarant’s options until termination date
100.155
Variable property
100.170
Easement held by declarant
100.175
Reserve account for maintaining, repairing and replacing common elements
100.185
Express warranties
100.200
Declarant control of association
100.205
Transitional committee
100.210
Turnover meeting
100.220
Liabilities and obligations arising from transfer of special declarant right
100.225
Acquisition of special declarant rights by successor declarant
100.250
Documents required to be filed with Real Estate Agency
100.255
Processing of documents filed with Real Estate Agency
100.260
Condominium Information and Annual Reports
100.265
Annual Report
100.275
Application of ORS 100.250 to 100.280
100.280
Termination of filing Condominium Information Report
100.285
Resignation of designated agent
100.290
Rules
100.300
Inapplicability of ORS 100.301 to 100.320 to transient lodgings
100.301
Definitions for ORS 100.301 to 100.320
100.305
Conversion condominium
100.310
Rights of tenants in conversion
100.315
Improvements in conversion condominium during notice period
100.320
Authority of city or county to require developer to pay tenant moving expenses
100.405
Association of unit owners
100.407
Annual and special meetings of association
100.408
Quorum for meeting of association
100.409
Rules of order
100.410
Adoption of bylaws
100.411
Restated bylaws
100.413
Approval of amended or restated bylaws
100.415
Contents of bylaws
100.416
Criteria for board of directors membership
100.417
Board of directors of association
100.418
Receivership for failure of association to fill vacancies on board of directors
100.419
Assent of director to board action
100.420
Board meetings
100.423
Electronic notice to owner or director
100.425
Use of written ballot for approving or rejecting matters subject to meeting of unit owners
100.427
Methods of voting
100.428
Electronic ballot
100.430
Unit deeds
100.435
Insurance for individual units and common elements
100.440
Liens against property
100.445
Independent default clauses
100.450
Association lien against individual unit
100.460
Foreclosure against unit
100.465
Circumstances in which deed in lieu of foreclosure extinguishes lien
100.470
Lien foreclosure
100.475
Personal liability for assessment
100.480
Maintaining documents and records
100.481
Application of ORS 100.480
100.483
Annual budget
100.485
Duration and termination of initial management agreements and service and employment contracts
100.490
Notice to unit owners of intent of association to commence judicial or administrative proceedings
100.505
Status and ownership of units
100.510
Units and common elements distinguished
100.515
Interest of units in common elements
100.520
Easement held by units and common elements
100.525
Voting or consenting
100.530
Allocation of common profits and expenses
100.535
Maintenance and improvement of units
100.540
Use and maintenance of common elements
100.545
Compliance with bylaws and other restrictions
100.550
Service of process
100.555
Taxation of units
100.600
Termination of association or removal of real property by unit owners
100.605
Removal of property from association
100.610
Common ownership of property removed from unit ownership
100.615
Action for partition
100.620
Termination or removal no bar to resubmission
100.625
Procedure for dividing or converting units
100.626
Legislative findings
100.627
Electric vehicle charging stations
100.635
Filing with commissioner
100.640
Filing
100.645
Filing information to be kept current
100.650
Service of process on nonresident developer
100.655
Disclosure statement
100.658
Limited residential condominium filing
100.660
Nonresidential condominium or security filing
100.665
Exemption to certain disclosure and notice requirements
100.668
Documents and information included with filing
100.670
Fees
100.675
Inventory of filing
100.680
Escrow of unit sales agreement
100.685
Contents of unit sales agreement
100.700
Inspection of condominium
100.705
Sale prohibited prior to issuance of disclosure statement
100.710
Inspection deposit
100.720
Conditions prerequisite to sale
100.725
Documents prerequisite to execution of sale agreement and conveyance of unit
100.730
Cancellation of sale of unit
100.735
Waiver of right to cancel
100.740
Notice to purchaser of cancellation rights
100.745
Escrow documents required of successor to vendor’s interest
100.750
Inspection of records
100.770
Fraud and deceit prohibited
100.775
False or misleading advertising prohibited
100.780
Waiver of legal rights void
100.785
Blanket encumbrance prohibited
100.900
Civil penalty
100.905
Cease and desist order
100.910
Use of fees
100.920
Changes or actions that require approval or consent of mortgagee
100.990
Criminal penalties
Green check means up to date. Up to date