NC Planned Community Act re reserves

Started by NancyG3 • 4 replies • 1650 views

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NancyG3 (North Carolina)
Posts: 342

Posted:

I've read in other posting about laws requiring an Association to perform reserve studies. Does anyone know if North Carolina has passed this law. If so do they know the reference number. Thank you.

MikeD13 (Virginia)
Posts: 9

Posted:

I just took a quick look at some NC FAQs here (http://www.frb-law.com/HOAFAQs.htm) and, assuming they are accurate, there are two answers to your question. Apparently there are two laws for HOAs in NC, pre and post 1999. Look at FAQ #24 for your answer. While it does not appear to be mandated, a reserve study is a good way to create a baseline for both your assets and planned expenses. Without a reserve study or comparable plan, I think you really run the risk of having insufficient funds on hand for major replacements such as sidewalks and parking areas and your community may have to levy a hefty special assessment to get it done. Planning ahead is definitely the way to go.

NancyG3 (North Carolina)
Posts: 342

Posted:

MikeD13 - Thank you for this information.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Nancy

I am unaware of any law in any state that says a reserve study must be done. That said, doing one is one of the best things an association can do.

EdmundS1 (North Carolina)
Posts: 45

Posted:

Like many of the other posters to this question I reside in NC and our community recently met the requirements for the "Planned Community Act" in NC. In my readings on the subject I don't remember any reference to a "reserve study" but do recommend it.

Our community is responsible for many big ticket items (roads, street lights, snow removal, underground utilities, etc. so having adequate reserves has always been part of our long term planning...every community needs a reserve fund....mandated by law or not.

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