What it means for your study
A retrofit is a capital project, not a reserve item, but it changes the building the reserve study describes. New steel frames, footings and finishes at the garage level have lives of their own, and the money spent on the retrofit often comes out of the same pot the board was counting on for roofs and paint. Ask the firm to show the retrofit in the component list and in the cash flow, so the next 30 years start from the building as it stands now.
Two things to raise with the firm
- January 2025 brought the Palisades and Eaton fires, which CAL FIRE counted among the most destructive in state history. Ask how the study treats rising insurance deductibles, which reserves do not normally fund.
- Small associations are not exempt. A single building of a dozen homes usually has major components worth more than half its yearly budget, which is the test in Civil Code 5550.
The statewide rules, briefly
A visual inspection of the accessible major components at least every three years and a board review every year (Civil Code 5550). A funding plan adopted at an open meeting. A reserve summary and the 5570 disclosure form in the annual budget report. And for condominium buildings, the balcony inspection every nine years.
Firms with a base in or near Los Angeles
California communities only, mostly in the south of the state.
Southern California associations since 1991.
From the firms' own sites; not a recommendation. More firms on the statewide list.