State profile

California

Yes

California has the most detailed reserve statute in the country. Every association whose major components' replacement value is at least half its gross budget must commission a reserve study based on a diligent visual site inspection at least every three years, review it annually, and disclose percent funded and the funding plan to owners with the annual budget report.

Update every

3 yrs

Site visit

Every 3 yrs

Applies to

All common interest developments

What your board must do

01Commission a reserve study based on a diligent visual site inspection of accessible major components at least every third year (Civ. Code §5550(a)).

02Review the study annually and consider and implement necessary adjustments to reserve account requirements (Civ. Code §5550(a)).

03Distribute the annual budget report 30–90 days before fiscal year end, including the reserve summary under §5565 — component list, percent funded, and funding assumptions.

04Include the Assessment and Reserve Funding Disclosure Summary form prescribed by §5570 with every annual budget report.

Statutes

Civ. Code §5550Study frequency and site inspection Civ. Code §5565Annual reserve summary contents Civ. Code §5570Funding disclosure summary form

Last statutory change Jan 2025 · Page reviewed Sep 2026 · Not legal advice