Is Your Condo Association Ready for Rhode Island’s New Reserve Law?
Title: Is Your Condo Association Ready for Rhode Island’s New Reserve Law?
Introduction
Condo boards across Rhode Island are starting to ask the same question: What happens if the new reserve law passes?
Pending legislation, known as Rhode Island Bill H5824, could soon require condominium associations to maintain 100% funded reserves and to perform licensed engineering reserve studies at regular intervals. For many smaller and mid-sized associations, this could trigger financial stress, emergency assessments, or difficulty obtaining insurance and loans.
But there’s good news — there’s still time to prepare.
The Challenge Facing Condo Boards
Most associations have some level of reserve savings, but many are underfunded — often without realizing how far behind they are. When an association defers maintenance or avoids increasing fees, the result is a growing liability that quietly compounds over time.
Under the proposed law, this liability will no longer be optional. Boards will be legally obligated to prove that reserve funds are sufficient to cover future major repairs and replacements.
In practical terms, that means a condo complex that needs $800,000 over the next 30 years for roofs, siding, pavement, and painting must show a funding plan that supports that total — not just “what we have right now.”
Why This Matters Now
If a board waits until the law takes effect to begin a reserve study, they may face three unexpected hurdles:
Higher Costs – Full engineering reserve studies can cost thousands of dollars.
Limited Availability – With new demand statewide, licensed engineers will be booked months in advance.
Urgency Under Pressure – When a study reveals a large shortfall, associations may have no choice but to levy assessments or raise monthly fees quickly.
The smarter approach is to take a proactive, preliminary look now — while there’s still flexibility to plan ahead.
Introducing ReserveScan™
That’s exactly why we created ReserveScan™ — a fast, affordable way for condo and HOA boards to estimate their long-term reserve health before investing in a full study.
Using your association’s basic data (such as number of units, building size, and current reserve balance), ReserveScan™ provides a detailed Estimated Reserve Study showing:
30-year funding projections
Annual contribution recommendations
Estimated shortfall or surplus at current funding levels
Key repair and replacement timelines
It’s designed to give your board clear insight in just 3-5 days, based on verified cost baselines and a built-in 3% annual inflation adjustment.
How It Works
Submit your data through our simple online form.
We verify all costs against the 2025 New England Baseline Table.
We deliver your results — including a clear funding chart and written summary.
For most associations, this single step is enough to reveal whether they’re comfortably on track or facing a future funding gap.
A Real-World Example
One Rhode Island complex of 18 units recently completed a ReserveScan™. They discovered that their current reserve of $42,000 would need to grow to over $500,000 within 30 years to meet full funding standards — a shortfall of nearly half a million dollars.
By knowing that now, they can phase in small, predictable increases instead of facing a sudden $16,000-per-unit assessment later.
Why ReserveScan™ Works
Affordable: $297 - One simple price. No hidden fees, no upsells, no surprises.
Fast: Delivered in 3-5 days.
Accurate: All data verified against regional cost baselines.
Proactive: Helps your board plan ahead before full studies become mandatory.
Conclusion
The truth is, new legislation doesn’t create financial problems — it reveals them. The sooner a board understands its funding position, the easier it is to correct course with confidence and transparency.
Don’t wait until compliance is required by law.
Get ahead now with ReserveScan™ — and know where your association stands.
👉 Order your ReserveScan™ today at ReserveScan.com
