California - SB 900

Our Reserve Analyst has just informed us of SB 900 that requires that HOAs repair gas, electric, heat, and water services promptly when the problem arises in a HOA controlled common area. They advise proactive planning for such an emergency, and provide this list of things to do:

Proactive Planning:
Since buried utilities are not fully accessible during typical inspections, boards should:
• Consult utility specialists or engineers for risk assessments and expected remaining lives of
the utility components.
• After risk assessments, get estimates for replacing the components based on specialists’ or
engineers’ evaluations of remaining lives of the components.
• Provide your reserve analysis company with the risk assessment reports and cost estimates.
• Request the analyst to include costs and remaining life estimates in the reserve study.
• Set aside contingency reserve funding to address unforeseen utility failures.
• Educate homeowners on SB 900’s requirements to build support for potential emergency costs.

Anyone else had this information in their latest reserve study?

Thanks, Sue

Interesting. Our analyst produces a 39 page report every year, with a component list of 49 common area elements that have to be maintained over 30 years, they advise us on how much we need to save each year to fund our reserves, and provides the Board with professional advice that we can refer to if a member sues for any reason. We can prove that we didn't just pull the figures/projects from thin air but that we took professional advice. For me as the Board chair that is worth every bit we pay each year for our studies. I think, but don't know, that the utility requirement wasn't in the builder documentation when the HOA first started and that is why we are now being asked to consult with other professionals. I'm interested in how and if other CA HOAs are dealing with this. You don't need to worry about this matter, at least, being in TN. Regards, Sue

Man, I need to move to CA and become a reserve analyst. You do all the leg work and provide me the risks and costs and I will charge you to put the known information into a report.

To Tim:

Now that's a response that's helpful. I will push back on our largest HOA in the country and see where I get. Sue