Colorado HB 09-1359 states that associations shall adopt policies and procedures on when a reserve study be completed, and whether the reserve study will be based on a physical and financial analysis. The statute doesn’t require that a reserve study be completed, but does imply that associations will have a reserve study. The policy must state if there is a funding source for improvements recommended by the reserve study and, if so, the sources of the funding. Some association attorneys recommend a full reserve study (full on-site inspection with complete financial analysis) be completed every three years with an annual update (no inspection) in the intervening years. In addition association board members should inspect common area assets annually as part of the budgeting process. The results of this process can be used by the reserve study preparer to make changes to the study when a full inspection is not done. The results of this inspection can be used to do preventative maintenance to common area assets (such as roadway crack filling) to extend the useful life of assets.