California AB2050 mandates reserve account funding plans for common interest developments to ensure long-term financial solvency.

California AB2050 amends the Civil Code to establish minimum reserve contribution levels for common interest developments. It requires associations to conduct visual inspections of major components every three years and submit a study detailing the components' remaining useful life, repair costs, and annual contribution estimates. If the reserve account balance is projected to fall below zero over 30 years, associations must transfer at least 15% of their gross annual budget to the reserve account. The bill also allows for reserve funding special assessments if necessary.

California AB2050 mandates reserve account funding plans for common interest developments to ensure long-term financial solvency.

California AB2050 amends the Civil Code to establish minimum reserve contribution levels for common interest developments. It requires associations to conduct visual inspections of major components every three years and submit a study detailing the components' remaining useful life, repair costs, and annual contribution estimates. If the reserve account balance is projected to fall below zero over 30 years, associations must transfer at least 15% of their gross annual budget to the reserve account. The bill also allows for reserve funding special assessments if necessary.