Property Management
What is a 'reserve study' for Illinois condominium associations?
AA study of market rents to set association fees
BAn analysis of the condition and remaining useful life of common elements and estimated costs of future major repairs, used to establish adequate reserve fund contributions✓ Correct
CA study required by IDFPR for condominium conversions
DA financial audit of association reserve accounts
Explanation
A reserve study assesses the condition and remaining useful life of a condominium's common elements (roof, elevators, parking, amenities) and projects the costs of major repairs and replacements over a 20-30 year horizon. It recommends the level of annual reserve contributions needed to fund these costs without special assessments.
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