Louisiana reserve studies

The only mandatory reserve disclosure is in a condo developer's Public Offering Statement at the initial sale, which must state the reserve amount or explicitly state that there is none (R.S. 9:1124); there is no recurring or resale reserve-disclosure mandate. That makes reserves a buyer-driven diligence item — and a high-stakes one. In a state with the nation's second-worst insurance crisis and a hurricane-plus-flood-plus-subsidence hazard stack, an underfunded reserve is far more dangerous than in a low-hazard state: one major storm can force a six-figure-per-unit special assessment, and reserves frequently cannot cover the rising master-policy named-storm deductible, creating a built-in assessment trigger after every storm. Because no study is required, read the actual reserve balance directly against the building's age, envelope, and deductible exposure.