A reserve study is a long-range plan for the big things a condominium will have to replace: roofs, paving, siding, windows, elevators, boilers. It lists each item, estimates its remaining life and replacement cost, and sets how much the association should put aside each year so the money is there when the work is due.
Does Rhode Island require one?
Not as of 2026. Bills that would have required reserve studies and fully funded reserves were introduced in the 2026 session and did not pass. The legislature did create a commission to study condominium law, which is due to report by December 31, 2027, so boards should expect the question to come back.
Why reserves matter anyway
Every time a unit sells, the association's resale certificate must disclose its current reserves, any reserves set aside for specific projects, and its anticipated capital expenditures for the current and next two fiscal years (§ 34-36.1-4.09). Buyers, their lenders and their attorneys read those numbers. Thin reserves and a large roof bill on the horizon can slow a sale or push a buyer away, and they usually end in a special assessment owners didn't plan for.
How a reserve study works
- Inventory. List every common element the association must maintain and will eventually replace.
- Condition and life. Estimate each item's useful life and how many years it has left.
- Cost. Price the replacement in today's dollars.
- Funding plan. Set a yearly contribution that keeps the reserve ahead of the work, usually built into the condo fee.
- Update. Revisit the study every few years and after any major project, since costs and conditions change.
Keeping reserves separate
Reserve money should sit in its own account, apart from operating funds, and the board should see the balance every month. That makes it easy to show owners and buyers what's there and hard to spend it on routine bills.
This guide is general information, not legal advice. Your association's declaration and bylaws may add their own requirements, and the statute can change; the linked sections on the Rhode Island General Assembly's site are the current text.