What type of study is mandated for condominium corporations under Section 94?

The mandated study for condominium corporations under Section 94 is the Reserve Fund Study. This requirement ensures that condominium corporations assess the adequacy of their reserve fund for future capital repairs and replacements. A Reserve Fund Study takes into account the anticipated lifecycle of common elements, such as roofs, elevators, and other significant components of the property.

The study helps to determine the long-term financial needs of the condominium corporation. It involves estimating the costs associated with repairing or replacing these common elements while also advising on how much money needs to be set aside annually to adequately prepare for these expenses. By having a comprehensive Reserve Fund Study, condominium corporations can ensure they are maintaining the financial integrity necessary to manage their properties effectively over time.

This is an important aspect of managing a condominium because it helps to avoid unexpected assessments or financial shortfalls that could occur if the required funds for maintenance and repairs are not properly planned for.