Michigan reserve study questions
Short answers to what Michigan condo boards and managers ask us most. General information, not legal advice.
The rule
- Is a reserve study mandatory in Michigan?
- Not that we can find. R 559.511 requires condominium bylaws to provide for a reserve fund of at least 10 percent of the current annual budget. It does not require a study. Your own bylaws may ask for more, so read them.
- Can we fund reserves with a special assessment instead?
- The rule says the fund is financed through regular payments rather than special assessments. A special assessment can still pay for a project the reserve cannot cover, but it does not replace the regular contribution.
- Does the rule apply to our subdivision HOA?
- It applies to condominiums under the Condominium Act, including site condos. Associations for platted subdivisions are usually set up under other law. Ask the association's attorney which applies to you. Our law guide has more.
- What happens if we are below 10 percent?
- The rule does not set out a penalty itself. In practice, co-owners can press the board to follow the bylaws, and lenders and buyers notice. Bring the budget up to the minimum in the next budget year, and ask the attorney if there is a dispute.
The study
- What is in a reserve study?
- A list of the common elements the association must repair or replace, each with a remaining life and a cost, and a funding plan that shows the contributions needed over the next 30 years or so. CAI calls these the physical analysis and the financial analysis.
- How long does it take?
- Allow four to eight weeks from signing to the final report for a full study, longer in spring when providers are busiest and shorter for desk updates. Plan backward from your budget meeting.
- Should the site visit happen in winter?
- Avoid it if you can. Snow hides roofs, paving and decks, which are the costliest Michigan components. If the timing cannot move, ask the provider to note what was not visible and follow up in spring.
- Who should we hire?
- Someone independent of any contractor who would do the repairs. Ask for credentials (CAI's Reserve Specialist designation is common), insurance, a sample report and two Michigan references from associations of a similar size.
Cost and timing
- What does a Michigan reserve study cost?
- Most full studies fall in the low thousands of dollars; large complexes cost more. See the cost guide for ranges by size. A guide, not a quote.
- How often should we update?
- Michigan sets no interval. A desk update every year and a site visit every three years is a common pattern under CAI standards. Older complexes with big projects close at hand benefit most from the tighter cycle.
Get a quote
Three short steps. The ZIP code and size of the community come first, then how to reach you, then two taps about your role and your last study.
Michigan Reserve Studies is a request service, not a reserve study provider. We choose one provider who works in your part of Michigan, tell you who it is, and pass on your request only when you say so. The provider pays us; you do not.
Thank you. We have your request.
- Within one working day you get a single name from us: a reserve study provider that covers your part of Michigan.
- Say the word and we forward your request. If you decline or never answer, it goes nowhere.
- The provider asks for your budget, governing documents and any past study, then sends a proposal.
While you wait, pull together this year's budget and the master deed and bylaws; every provider will ask for them.