(1) A reserve study as described in RCW 64.34.380 is supplemental to the association's operating and maintenance budget. In preparing a reserve study, the association shall estimate the anticipated major maintenance, repair, and replacement costs, whose infrequent and significant nature make them impractical to be included in an annual budget.

     (2) A reserve study shall include:

     (a) A reserve component list, including quantities and estimates for useful life of each reserve component, remaining useful life of each reserve component, and current repair and replacement cost for each component;

     (b) The date of the study and a statement that the study meets the requirements of this section;

     (c) The level of reserve study performed:

     (i) Level I: Full reserve study funding analysis and plan;

     (ii) Level II: Update with visual site inspection;

     (iii) Level III: Update with no visual site inspection;

     (d) The association's reserve account balance;

     (e) The percentage of the fully funded balance that the reserve account is funded;

     (f) Special assessments already implemented or planned;

     (g) Interest and inflation assumptions;

     (h) Current reserve account contribution rate;

     (i) Recommended reserve account contribution rate;

     (j) Projected reserve account balance for thirty years and a funding plan to pay for projected costs from those reserves without reliance on future unplanned special assessments; and

     (k) Whether the reserve study was prepared with the assistance of a reserve study professional.

     (3) A reserve study shall include the following disclosure:

     "This reserve study should be reviewed carefully. It may not include all common and limited common element components that will require major maintenance, repair, or replacement in future years, and may not include regular contributions to a reserve account for the cost of such maintenance, repair, or replacement. The failure to include a component in a reserve study, or to provide contributions to a reserve account for a component, may, under some circumstances, require you to pay on demand as a special assessment your share of common expenses for the cost of major maintenance, repair, or replacement of a reserve component."

[2008 c 115 § 2.]