CCS CCS Reserve Studies & Capital Planning 3

Question 1

Which Florida statute requires condominium associations to conduct reserve studies and maintain reserves for specific components, influencing CCS exam content?

Accepted Answer

Florida Statute Chapter 718 (Condominium Act)

Answer

Florida Statute Chapter 718, the Florida Condominium Act, governs reserve requirements for condominium associations, including mandatory reserves for roofing, painting, paving, and other major components.

Question 2

What is the 'useful life' of a component in the context of a reserve study?

Accepted Answer

The estimated total years a component is expected to function before requiring replacement

Answer

Useful life is the total expected lifespan of a component from installation to replacement, used to calculate the annual depreciation and reserve contribution needed.

Question 3

A condominium board may waive or reduce reserve funding only if:

Accepted Answer

A majority of unit owners vote to waive or reduce reserves at a duly noticed meeting

Answer

Under most state statutes including Florida's, reserve funding can only be waived or reduced by a majority vote of all unit owners, not by board decision alone.

Question 4

What does 'remaining useful life' (RUL) mean for a condominium component listed in a reserve study?

Accepted Answer

The estimated years before the component will need to be replaced or significantly repaired

Answer

Remaining useful life is how many more years the component is expected to last before replacement is needed, driving when reserve funds must be available.

Question 5

Why is it important for a CCS specialist to understand the relationship between the reserve study and the condominium's governing documents?

Accepted Answer

The CC&Rs and bylaws may specify reserve funding minimums, waiver procedures, and which components must be funded

Answer

Governing documents often mandate specific reserve requirements, define which components must be included, and establish the procedures for waiving reserves — all of which a CCS specialist must know.

(CCS) Certified Condominium Specialist Practice Test

(CCS) Certified Condominium Specialist Practice Test

CCS CCS Reserve Studies & Capital Planning 3