The rules
- NRS 116.31151: the board must prepare and distribute a budget each year, including a summary of the reserves, and owners have the right to ratify or reject it at a meeting.
- NRS 116.31152: a reserve study by a qualified professional at least every five years, reviewed annually, with a funding plan.
What to look for in a reserve study
| Item | Why it matters |
|---|---|
| Percent funded | Under ~30% is weak; a strong association is 70%+. This is the single number that predicts special assessments. |
| Component list | Roads, gates, entry structures, landscaping irrigation, drainage. Are the gate system and Proptia hardware on it? |
| Remaining useful life of roads | If the roads were “urgently” redone, what did the study say about them? |
| Funding plan | Does the plan close the gap with dues increases, an assessment, or hope? |
| Date | If it’s older than five years, the association is out of compliance. |
What to look for in the budget
- Line items for gate attendants, Proptia / access control, snow, landscaping, management fee, legal.
- The reserve contribution as a share of total assessments.
- Year-over-year change with an explanation.