Historical Version of Section.
Effective May 8, 2012.
(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 of the 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 less frequently than every six years; and
(ii) if no reserve analysis has been conducted since March 1, 2008, cause a reserve analysis to be conducted before July 1, 2012; and
(b) review and, if necessary, update a previously conducted reserve analysis no less frequently than every three years.
(3) The management committee may conduct a reserve analysis itself or may engage a reliable person or organization, as determined by the management committee, to conduct the reserve 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 association of 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 of the association of unit owners.
(c) This Subsection (4) may not be construed to limit a management committee from prudently investing money in a reserve fund, subject to any investment constraints imposed by the declaration.
(5) Subsections (2), (3), (4), and (6) do not apply to an association of unit owners during the period of declarant management.
(6) An association of unit owners shall:
(a) annually, at the annual meeting of unit owners or at a special meeting of unit owners:
(i) present the reserve study; and
(ii) provide an opportunity for unit owners to discuss reserves and to vote on whether to fund a reserve fund and, if so, how to fund it and in what amount; and
(b) prepare and keep minutes of each meeting held under Subsection (6)(a) and indicate in the minutes any decision relating to funding a reserve fund.
(7) This section applies to each association of unit owners, regardless of when the association of unit owners was created.