In this section the following words have the meanings indicated. “Reserve study” means a study of the reserves required for future major repairs and replacement of the common areas of a homeowners association that: Using an itemized list, identifies each structural, mechanical, electrical, and plumbing component of the common areas and any other components that: Are the responsibility of the homeowners association to repair and replace; and If applicable, meet a minimum cost of repair or replacement, as determined by the governing body, that is: Reasonably based on the expenses of the homeowners association; and Not a minor expense that is otherwise addressed by the budget of the homeowners association; States the estimated remaining useful life of each identified component; States the estimated cost of repair or replacement of each identified component; States the estimated annual reserve amount necessary to accomplish any identified future repair or replacement; and States the quantity or size of each identified component using the appropriate measurement, such as unit amount, square footage, or cubic feet. “Updated reserve study” means, for the common areas since the prior reserve study was completed within the previous 5 years, a study that: Revises replacement cost, remaining life, and useful life estimates; Analyzes work performed and amounts spent; and Identifies whether any maintenance contracts are in place. This section applies only to a homeowners association: That has responsibility under its declaration for maintaining and repairing common areas; and For which the total repair or replacement costs for all components identified in subsection (a) of this section is at least $10,000. This section does not apply to a homeowners association that issues bonds for the purpose of meeting capital expenditures. This subsection applies only to a homeowners association established in: Prince George’s County on or after October 1, 2020; Montgomery County on or after October 1, 2021; or Any county other than Prince George’s County or Montgomery County on or after October 1, 2022. The governing body of the homeowners association shall have an independent reserve study completed not more than 90 calendar days and not less than 30 calendar days before the meeting of the homeowners association required under § 11B–106.1(a) of this title. The governing body shall have an updated reserve study completed within 5 years after the date of the initial reserve study conducted under paragraph (2) of this subsection and at least every 5 years thereafter. This paragraph applies only to a homeowners association established in Prince George’s County before October 1, 2020. If the governing body of a homeowners association has had a reserve study conducted on or after October 1, 2016, the governing body shall have an updated reserve study conducted within 5 years after the date of that reserve study and at least every 5 years thereafter. If the governing body of a homeowners association has not had a reserve study conducted on or after October 1, 2016, the governing body shall have a reserve study conducted on or before October 1, 2021, and an updated reserve study at least every 5 years thereafter. This paragraph applies only to a homeowners association established in Montgomery County before October 1, 2021. If the governing body of a homeowners association has had a reserve study conducted on or after October 1, 2017, the governing body shall have an updated reserve study conducted within 5 years after the date of that reserve study and at least every 5 years thereafter. If the governing body of a homeowners association has not had a reserve study conducted on or after October 1, 2017, the governing body shall have a reserve study conducted on or before October 1, 2022, and an updated reserve study at least every 5 years thereafter. This paragraph applies only to a homeowners association established in any county other than Prince George’s County or Montgomery County before October 1, 2022. If the governing body of a homeowners association has had a reserve study conducted on or after October 1, 2018, the governing body shall have an updated reserve study conducted within 5 years after the date of that reserve study and at least every 5 years thereafter. If the governing body of a homeowners association has not had a reserve study conducted on or after October 1, 2018, the governing body shall have a reserve study conducted on or before October 1, 2023, and an updated reserve study at least every 5 years thereafter. Each reserve study and updated reserve study required under this section shall: Be prepared by a person who: Has prepared at least 30 reserve studies within the prior 3 calendar years; Has participated in the preparation of at least 30 reserve studies within the prior 3 calendar years while employed by a firm that prepares reserve studies; Holds a current license from the State Board of Architects or the State Board for Professional Engineers; or Is currently designated as a reserve specialist by the Community Association Institute or as a professional reserve analyst by the Association of Professional Reserve Analysts; Be available for inspection and copying by any lot owner; Be reviewed by the governing body of the homeowners association in connection with the preparation of the annual proposed budget; and Be summarized for submission with the annual proposed budget to the lot owners. The governing body of a homeowners association shall, in consultation with a person identified under subsection (e)(1) of this section, develop a funding plan to determine how to fund the reserves necessary under this section. In developing the funding plan under this subsection, the governing body shall select one of the following methods to achieve the reserve funding under this section: The component method; The cash flow method; The baseline funding method; The threshold cash flow method; or Any other funding method consistent with generally accepted accounting principles. A funding plan developed under this subsection shall prioritize adequate amounts for repair and replacement of common areas of the homeowners association that are necessary for: The health, safety, and well–being of the occupants; Ensuring structural integrity, such as roofing replacements and maintaining structural systems; Essential functioning, such as plumbing, sewer, heating, cooling, and electrical infrastructure; and Any other essential or critical purpose, as determined by the governing body. Reserves may be used for purposes other than those specified in the funding plan if the funds are repaid to the reserve fund within 5 years after their use. A governing body of a homeowners association shall review progress toward compliance with the funding plan developed under this subsection at each annual meeting of the homeowners association.