PREPARING FOR SB154
By
Rafael Aquino
Published May 24, 2023
Community associations must proactively prepare
for the implications of SB 154, focusing on the Structural Integrity
Reserve Study and reserve fund management. This article highlights
critical steps associations should take within the limited timeframe
to ensure compliance and long-term community well-being.
1. Understand the Implications:
Familiarize yourself with SB 154's requirements
and implementation timeline, recognizing the limited preparation
time available. Gain a clear understanding of the changes affecting
structural integrity assessments and reserve fund usage. We
recommend working with your management company and association
attorney to understand the implications for your community.
2. Engage Expertise:
Promptly engage licensed engineers, architects,
or certified reserve specialists to conduct or verify the visual
inspection portion of the Structural Integrity Reserve Study. Their
Expertise is essential for accurately evaluating the building's
structural components.
3. Review Budgeting Practices:
Align existing budgeting practices with SB 154 by
allocating sufficient funds for component replacement or deferred
maintenance costs identified in the study. Seek guidance from the
association's management company, auditing experts, and reserve
analysts to develop a compliant budgeting strategy while ensuring
long-term financial stability.
4. Communicate and Educate:
Facilitate internal communication and education
to inform board members, property managers, and staff about the new
laws and their implications. Conduct regular meetings and
educational sessions to foster a shared understanding of compliance
responsibilities.
5. Establish a Timeline and Action Plan:
Create a clear timeline and action plan to meet
compliance deadlines effectively. Break down tasks, assign
responsibilities, and regularly review progress. Adjust the plan as
needed to stay on track.
By promptly understanding the implications,
engaging Expertise, revising budgeting practices, fostering internal
communication, establishing a clear action plan, and collaborating
with industry associations, community associations can efficiently
comply with SB 154. Embracing these changes ensures legal
compliance, enhances community safety, and supports long-term
sustainability.
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