Question:
Declarations for our Lynden HOA were filed, and the association developed, as one common assoc. of multiple buildings, units, and owners. I will refer to this as the “Mutual” association. Eight residential buildings housing 35 condos were completed as part of Mutual.
Later, each of the individual residential buildings filed Declarations to create self-governed HOAs. The Declarations for each building provide that the Declarations for Mutual are incorporated within, and part of, each building’s declarations.
Mutual now wishes to comply with State laws regarding Reserves study & financing. We are inquiring “does the Reserves study & requirements apply to the “common” association as originally declared? Or are each of the eight self-governed building HOAs now independently considered an HOA subject to State law?
– Larry
Answer:
Hi Larry,
All homeowners associations, whether it is the master association or the sub-associations, are subject to state law. As such, the reserve study and requirements do apply to the sub-associations (or common associations, as you referred to them) as well. However, the master association can choose to maintain a reserve fund and perform a reserve study for the entire master association (including the sub-associations). It depends on the language the governing documents use. It is best to consult a lawyer for further guidance on this matter.
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