The three-year update

The same subsection that sets the six-year rule adds a second duty: the board must "review and, if necessary, update a previously conducted reserve analysis no less frequently than every three years". The condominium statute uses the same words. So the shortest compliant rhythm is a full analysis in year 0, a review in year 3, a full analysis in year 6, and so on.

A review means someone compares the analysis with what has actually happened: which projects were done, what they cost, what the reserve balance is now, and whether prices have moved. If everything still holds, the review can conclude that no update is needed, and the board should minute that conclusion.

More often something has changed. Contractor bids rarely match a three-year-old estimate, and a roof that looked fine in year 0 may have aged faster. Then the board updates the analysis: new cost estimates, new remaining lives, a new contribution and funding plan.

The Community Associations Institute's reserve study standards describe two update levels, and most Utah firms quote both:

• Update with a site visit. A specialist walks the property again, checks the condition of each component and revises the numbers. Firms typically price this at roughly 50 to 80 percent of a full analysis fee.
• Update without a site visit. A desk update using the board's records of completed work and current balances. Fees are often under $1,000.

A common pattern is to alternate: a desk update in year 3, a full analysis with a visit in year 6. If a major component failed early or a big project came in well over budget, a visit is worth paying for.

The association must give owners a summary of "the most recent reserve analysis or update" every year. Once an update is done, that becomes the document the summary is drawn from, and the one an owner receives on request. Chapter five covers how boards usually present it.