Yes. California requires associations in common interest developments to complete a reserve study with a visual site inspection at least every three years and to review it annually, when the replacement value of the major components is at least half of the association's gross budget (Civil Code 5550). Reserve figures must be disclosed to owners each year in the annual budget report. A 2026 law, Assembly Bill 2050, adds minimum reserve funding rules that start on January 1, 2032.
Last verified October 12, 2026 by ReservePath research.
| Reserve study required | Yes |
|---|---|
| Applies to | Condominiums, HOAs and planned communities, Cooperatives |
| How often | Every 3 years |
| Site inspection required | Yes |
At least once every three years, the board of a common interest development must have a reserve study prepared, including a visual inspection of the major components, if the current replacement value of those components is at least half of the association's gross budget, not counting its reserve account. The board must review the study every year and adjust its reserve analysis as needed (Civil Code 5550). (see sources)
The study must include a reasonably competent and diligent visual inspection of the accessible areas of the major components the association must repair, replace, restore or maintain (Civil Code 5550). (see sources)
At least once every nine years, the board of a condominium association must have a licensed structural engineer, civil engineer or architect visually inspect a random, statistically significant sample of the exterior elevated elements the association maintains. These are wood-supported decks, balconies, stairways and walkways more than six feet above the ground, in buildings with three or more attached multifamily units. The first inspection was due by January 1, 2025, and the inspector's report is made part of the reserve study (Civil Code 5551). Health and Safety Code 17973, which sets a January 1, 2026 deadline and a six-year cycle for other buildings with three or more multifamily units, does not apply to common interest developments. (see sources)
The reserve study must include a reserve funding plan, and the board must adopt that plan at an open meeting, with a schedule of any assessment changes needed to fund it (Civil Code 5550, 5560). Current law sets no minimum funding percentage, and reserve funds may be spent only on repair, restoration, replacement or maintenance of major components, or related litigation (Civil Code 5510, 5570). Assembly Bill 2050 (Chapter 796, Statutes of 2026) adds Civil Code 5552, operative January 1, 2032: associations must then fund reserves each year at no less than the minimum contribution level in the study, and an association whose reserve balance is projected to fall below zero within 30 years must transfer at least 15 percent of its gross annual budget to reserves each year. (see sources)
The annual budget report, sent 30 to 90 days before the fiscal year ends, must include a reserve summary based on the most recent study and the Assessment and Reserve Funding Disclosure Summary form (Civil Code 5300, 5565, 5570). (see sources)
Civil Code 5550 does not say who must prepare the reserve study or set any credential. The separate exterior elevated element inspection must be done by a licensed structural engineer, civil engineer or architect (Civil Code 5551). (see sources)
ReservePath supports full studies, updates with a site visit and updates without one, 30-year funding projections, and study renewal reminders based on the cycle you set for each study. It includes in-app compliance guidance for each state as a starting point. The preparer and the association's attorney remain responsible for confirming what the law requires.
At least once every three years, the board of a common interest development must have a reserve study prepared, including a visual inspection of the major components, if the current replacement value of those components is at least half of the association's gross budget, not counting its reserve account. The board must review the study every year and adjust its reserve analysis as needed (Civil Code 5550).
Every 3 years under the statutes listed on this page. The study must include a reasonably competent and diligent visual inspection of the accessible areas of the major components the association must repair, replace, restore or maintain (Civil Code 5550).
Civil Code 5550 does not say who must prepare the reserve study or set any credential. The separate exterior elevated element inspection must be done by a licensed structural engineer, civil engineer or architect (Civil Code 5551).
The reserve study must include a reserve funding plan, and the board must adopt that plan at an open meeting, with a schedule of any assessment changes needed to fund it (Civil Code 5550, 5560). Current law sets no minimum funding percentage, and reserve funds may be spent only on repair, restoration, replacement or maintenance of major components, or related litigation (Civil Code 5510, 5570). Assembly Bill 2050 (Chapter 796, Statutes of 2026) adds Civil Code 5552, operative January 1, 2032: associations must then fund reserves each year at no less than the minimum contribution level in the study, and an association whose reserve balance is projected to fall below zero within 30 years must transfer at least 15 percent of its gross annual budget to reserves each year.
The annual budget report, sent 30 to 90 days before the fiscal year ends, must include a reserve summary based on the most recent study and the Assessment and Reserve Funding Disclosure Summary form (Civil Code 5300, 5565, 5570).
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