Comprehensive reserve study and engineering solutions designed to help HOAs and property owners plan ahead, stay compliant, and protect long-term value.
Alabama does not currently require HOAs or condominium associations to perform a formal reserve study or to fund a reserve account at a specific minimum level. Instead, the state’s laws focus on how associations are organized, how budgets and common expenses are managed, and what financial records must be available to owners.
For boards, that can create confusion. This guide explains what Alabama’s statutes say about budgets, reserves, and records, and where your declaration and bylaws fill in the details. It then outlines practical best practices so your community can avoid special assessments, maintain property values, and demonstrate sound financial stewardship even in the absence of strict reserve study mandates.
Legislation Links
Alabama Homeowners’ Association Act – Act 2015-292
Homeowners association and condominium boards in Alaska often ask the same questions: Are reserve studies required by Alaska law, and do we have to maintain a formal reserve fund? The short answer is that Alaska does not currently have a statute that explicitly requires HOAs or condo associations to complete reserve studies or to fund reserves to a specific minimum level.
However, that does not mean reserve studies and reserve funds are optional in practice. Alaska has adopted a version of the Uniform Common Interest Ownership Act (UCIOA), which gives associations broad authority to adopt budgets that include reserves and to collect assessments for common expenses, and requires new condominium projects to disclose budget and reserve information up front.
On top of that, lenders, insurers, and the Alaska Housing Finance Corporation (AHFC) expect “adequate reserves” when they underwrite mortgages, so underfunded or poorly planned associations can still face serious consequences.
Legislation Links
Alaska Common Interest Ownership Act
Arizona community associations operate in a grey area when it comes to reserve funding. There is no Arizona statute that forces an HOA or condominium association to create a reserve fund or to commission a formal reserve study, but the law does require specific disclosures about reserves in resale documents and gives boards explicit authority to adopt budgets with reserves. That combination often confuses boards, owners, and even real estate professionals.
This guide explains how Arizona regulates HOA and condo reserve funds, what A.R.S. 33-1242, 33-1260 and 33-1806 actually say, and how boards can use reserve studies as a best-practice tool even though they are not mandated. It is written for board members, association managers, and reserve study professionals who want clear, practical direction rather than vague generalities.
Legislation Links
Arizona Condominium Act – A.R.S. 33-1242
Arizona Condominium Resale Disclosures
Arizona Planned Community Resale Disclosures – A.R.S. 33-1806
Arkansas is one of the more lightly regulated states when it comes to HOA and condominium reserve funds. There is currently no Arkansas statute that forces associations to perform a reserve study or to maintain a minimum reserve balance. That does not mean, however, that boards can safely ignore long term repair and replacement costs.
This guide explains what Arkansas law actually says, where it is silent, and what boards should do in practice to stay financially stable, meet lender expectations, and fulfill their fiduciary duties. It focuses on practical best practices for both HOAs and condominium associations in Arkansas, rather than statutory checklists that simply do not exist today.
Legislation Links
Arkansas Horizontal Property Act
Arkansas Code § 18-13-116 Horizontal Property Act
Arkansas Nonprofit Corporation Act of 1993
California has some of the most detailed HOA reserve study requirements in the country. Under the Davis-Stirling Common Interest Development Act, boards must plan for long-term repairs, disclose reserve fund health to homeowners, and update their reserve study and funding plan on a regular cycle. These rules apply to most common interest developments in the state, including planned unit developments and condominium associations.
This guide breaks down California reserve study requirements into plain language: how often a study must be done, what it must include, how reserve funds can be used, what disclosures go out to owners, and what cost and funding benchmarks look like for communities across the state.
Legislation Links
Civil Code 5550 — Reserve Study Requirements
Civil Code 5560 — Reserve Funding Plan
Civil Code 5551 — SB 326 Exterior Elevated Element Inspections
Colorado’s Common Interest Ownership Act (CCIOA) focuses on reserve governance: it requires associations to maintain reserves responsibly, adopt written policies about reserve studies and reserve fund investment, and keep any existing studies on file. But it does not set a statutory minimum reserve balance or explicitly force every HOA to commission a reserve study on a fixed schedule.
This guide cuts through the noise and explains exactly what Colorado law requires today. It covers reserve funds, reserve study policies, common misconceptions about proposed legislation, and practical best practices for HOAs, condo associations, and townhome communities. You will see what is legally required, what is strongly recommended, and how to build a reserve program that holds up under owner, lender, and regulator scrutiny.
Legislation Links
Colorado Common Interest Ownership Act (CCIOA)
Colorado Division of Real Estate – HOA Frequently Asked Questions
Connecticut’s HOA laws and condominium laws require more financial discipline than many boards realize. While the statutes do not spell out an exact dollar amount or percentage that must be set aside, they do mandate “adequate reserves” and detailed disclosure of reserve fund levels to owners and buyers. For boards, this makes reserve funding a legal issue as well as a governance and risk-management issue.
This guide breaks down the key Connecticut statutes that govern reserve funding for condominiums and other common interest communities, explains how they apply in practice to HOAs and condo associations, and connects them with industry best practices on condo budget reserve requirements and reserve fund guidelines. It is written for board members, community managers, and reserve professionals who want a clear, practical interpretation of Connecticut HOA laws as they relate to long-term capital planning.
Legislation Links
Connecticut General Statutes § 47-88e
Delaware’s reserve study rules are more detailed than many boards expect. Between the Delaware Uniform Common Interest Ownership Act (DUCIOA) and the older Unit Properties Act, condominium and cooperative associations have clear legal obligations to maintain repair and replacement reserves, keep a current reserve study, and fund reserves to the levels identified in that study. Boards that ignore these requirements risk underfunded common elements, special assessments, and friction with lenders and buyers.
This guide explains how Delaware law treats reserve studies and reserve funds for condominiums, cooperatives, and homeowners associations (HOAs). It breaks down which communities must obtain a reserve study, how often it must be updated, what “fully funded” means, the minimum budget percentages that may apply, and how to build a practical compliance plan for your association.
Legislation Links
Delaware Uniform Common Interest Ownership Act (DUCIOA)
In Florida, homeowners’ associations (HOAs) must manage long-term repairs and replacements for roofs, pavement, buildings, and shared amenities. Reserves in Florida are governed primarily by two statutes: Chapter 720 for HOAs and Chapter 718 for condominiums. For HOAs specifically, Florida law does not explicitly require reserve studies, but when an association creates reserve accounts, Florida Statute 720.303(6) sets clear rules for how those Florida reserves are disclosed, budgeted, and used.
This guide explains Florida HOA reserve requirements, how reserve funds work under Chapter 720, what reserve money can be used for, and practical steps boards can take to protect their communities from special assessments and deferred maintenance.
Legislation Links
Florida Statute 720.303(6) – HOA Budgets & Reserves
Florida Statute Chapter 720 – Homeowners’ Associations Act (Full Chapter)
Georgia community associations sit in a gray zone: there is no statewide statute that forces HOAs or condominium associations to perform reserve studies or maintain a specific reserve fund level. At the same time, Georgia’s core community association laws – the Georgia Condominium Act and the Property Owners’ Association Act (POAA) – still define how budgets, assessments, and disclosures must be handled, including how reserves are presented in condominium resale documents.
For board members and association managers, that combination can be confusing. This guide explains what Georgia law does and does not require, how the Georgia Condominium Act impacts reserve disclosures, and what “best practice” looks like for funding reserves in a state without a formal reserve study requirement.
It is written for Georgia HOA and condo boards that want to avoid special assessments, keep dues predictable, and demonstrate sound fiduciary stewardship to their owners and lenders.
Legislation Links
Georgia Condominium Act
Hawaii has some of the most detailed reserve funding rules in the United States. Condominium associations are required by law to maintain replacement reserves, base their reserve budget on a formal reserve study, and follow specific rules for funding levels and long term cash flow projections. Planned community “HOA” style associations under Chapter 421J do not have the same explicit statutory reserve study mandates, but they still face significant financial and governance risk if they ignore long term repair and replacement costs.
This guide explains how Hawaii condominium reserve study requirements work today, including the effect of Act 62, what HRS 514B-148 expects to see in your annual budget, how to calculate reserve contributions, and how often studies must be updated. It also clarifies what is and is not required for non condominium HOAs and how Hawaii boards can use reserve studies as a practical tool, not just a compliance checkbox.
Legislation Links
Hawaii Revised Statutes Chapter 514B – Condominiums
Budgeting and Reserve Funding – Hawaii Department of Commerce and Consumer Affairs
2022 Legislative Update – Act 62 Reserve Study Changes to HRS §514B-148
Idaho community associations operate in a relatively flexible legal environment when it comes to reserve studies and reserve funds. As of the most recent national summaries of state reserve laws, Idaho does not impose a statutory requirement to conduct a reserve study or to fund reserves at a specific level for HOAs or condominium associations.
That flexibility is a double-edged sword. On one side, Idaho boards have wide discretion in how they plan for capital projects and major repairs. On the other, a lack of clear statutory rules makes it easy to underfund reserves, rely on special assessments, and leave owners exposed to unpleasant financial surprises. This guide explains what Idaho law does and does not require, how industry best practices fill the gap, and how your board can build a disciplined reserve study and funding program even without a state mandate.
Legislation Link
Idaho Condominium Property Act – Idaho Code Title 55, Chapter 15
Illinois boards and community managers are asking the same question: what exactly does state law require when it comes to HOA and condominium reserve funds, and are reserve studies actually mandatory? Search data shows owners and managers searching for “Illinois HOA reserve fund laws,” “Illinois condo reserve requirements,” and “are reserve studies the law in Illinois,” which tells you how much confusion exists.
This guide walks through the legal framework for reserves in Illinois, explains the difference between condominium associations and other common interest communities, and clarifies what is required by statute versus what is strongly recommended as best practice. It also explains how often you should update your reserve planning and how to use professional reserve studies to set and defend your funding decisions, even though those studies are not yet mandated by state law.
Legislation Link
Illinois Condominium Property Act – 765 ILCS 605, Section 9
Illinois Common Interest Community Association Act – 765 ILCS 160/1-45
Indiana community associations sit in a mixed landscape. The state does not require associations to perform formal reserve studies, but the Indiana Condominium Act does require condominium associations to establish and maintain a replacement reserve fund for capital expenditures and the repair or replacement of common areas.
For non-condominium HOAs, there is no statute that specifically mandates reserve studies or reserve funding levels, but boards still operate under the Indiana Nonprofit Corporation Act’s duty-of-care standards. This guide explains what the law actually says, where it is silent, and the best practices Indiana boards should follow to keep their communities financially stable and compliant, while avoiding unpleasant special assessments and deferred maintenance.
Legislation Link
Indiana Condominium Act
Iowa takes a relatively light-touch approach to regulating HOA and condo reserve funds. Unlike many other states, there is currently no statute that requires common interest communities to perform reserve studies or fund reserves to a specific level. Associations are instead governed primarily by their declarations, bylaws, and general corporate law.
That does not make reserves optional in practice. Well-run Iowa communities still need a structured plan for capital repairs and replacements, clear reserve funding strategies, and transparent budgets so owners understand how their money is being used. This guide explains what Iowa law does and does not require, and outlines best practices so your association can avoid special assessments and long-term underfunding.
Legislation Link
Iowa Horizontal Property Act (Condominiums) – Iowa Code Chapter 499B
Revised Iowa Nonprofit Corporation Act – Iowa Code Chapter 504
Kansas community associations sit in a gray zone when it comes to reserve laws. The state does not currently mandate that HOAs or condominium associations perform reserve studies or fund reserves to any specific minimum level. At the same time, Kansas law does impose detailed duties around budgets, records, governance, and good-faith decision making for boards that manage common interest communities.
For Kansas boards, managers, and reserve professionals, that combination means you cannot hide behind “no statute” as an excuse for poor financial planning. You still need a deliberate reserve strategy if you want to avoid surprise special assessments, owner backlash, and problems with buyers and lenders. This guide explains what Kansas law does and does not require, and outlines best-practice standards for reserve studies and reserve funding that will keep your association on solid ground.
Legislation Link
Kansas Uniform Common Interest Owners Bill of Rights Act
Kentucky takes a lighter-touch approach to regulating homeowners associations and condominiums than many coastal states. There is no statute that forces associations to commission a formal reserve study or to set reserves at a specific percentage of their budget. At the same time, Kentucky law does require certain communities to maintain a replacement reserve fund and to disclose reserve information in resale documents.
For Kentucky board members and managers, that combination can be confusing. This guide explains how the Kentucky Horizontal Property Law, the Kentucky Condominium Act, and the newer Planned Communities statute fit together; what they actually require regarding reserve funds; and how boards can use professional reserve studies as a best-practice tool to meet their fiduciary duties, minimize special assessments, and protect property values.
Legislation Link
Kentucky Horizontal Property Law
Louisiana does not impose the kind of detailed reserve study and reserve funding mandates that you see in states like Florida, Nevada, or California. That can give boards a false sense of comfort, right up until a roof, elevator, or seawall fails and the only option left is a painful special assessment.
This guide explains what Louisiana law actually says about reserves for condominiums and homeowners associations, where the gaps are, and how boards, association managers, and developers can use reserve studies and disciplined funding plans to protect their communities. It draws on the Louisiana Condominium Act, the new Planned Community Act for HOAs, and current industry best practices, then translates all of that into concrete steps you can take.
Legislation Link
Louisiana Condominium Act
RS 9:1123.102 – Powers of unit owners’ association (Louisiana Condominium Act)
Maine’s laws on HOA and condo reserve funds are relatively light compared with states that mandate regular reserve studies or minimum funding levels. That does not mean Maine boards can ignore long term planning. It simply means the responsibility for setting standards falls squarely on the association, not the legislature.
This guide explains what Maine law actually says about reserves and budgets, what it does not require, and how boards, managers, and developers can implement sound reserve study and funding practices anyway. We draw on the Maine Condominium Act, authoritative summaries of state reserve fund laws, and industry best practices to give Maine communities a practical roadmap for avoiding special assessments and protecting property values.
Legislation Link
Maine Condominium Act – Maine Revised Statutes Title 33, Chapter 31
Maryland has moved from “best practice” to “legal requirement” when it comes to reserve planning. Recent legislation – including House Bill 107 and follow-on amendments to the Maryland Condominium Act and Maryland Homeowners Association Act – now requires most condominiums, homeowners associations (HOAs), and cooperative housing corporations to obtain regular reserve studies and to fund reserves in line with those studies.
For boards and managers, this means Maryland HOA reserve requirements and Maryland reserve study law are no longer optional reading. They directly affect your annual budget, your ability to avoid special assessments, and, in many communities, the size of monthly assessments owners pay. This guide summarizes what the law requires, who is covered, how often reserve studies must be updated, and what your association should do next – with a practical focus on HOAs and condominiums across the state.
Legislation Link
Maryland Condominium Act
Massachusetts does not require reserve studies by statute, but Chapter 183A, Section 10(i) mandates that every condominium in the Commonwealth maintain an “adequate replacement reserve fund” in a separate, segregated account. For the thousands of condo and HOA boards across Boston, Worcester, Springfield, Cambridge, and beyond, understanding what the law does — and does not — require is the first step toward responsible financial stewardship.
This guide covers what Chapter 183A requires, how lender rules create a de facto study mandate, Massachusetts-specific climate factors that shorten component lifespans, pricing, and a step-by-step compliance roadmap.
Legislation Links
Mass. General Laws Chapter 183A, Section 10
In Michigan, there is a sharp distinction between what the law requires and what good practice demands. The Michigan Condominium Act expressly requires condominium associations to maintain a reserve fund for major repairs and replacement of common elements, and the Michigan Administrative Code sets a minimum funding level tied to 10 percent of the current annual budget.
At the same time, multiple authoritative summaries confirm that there is currently no statutory requirement for condominium or HOA communities to conduct reserve studies, even though many professionals strongly recommend them. This guide explains how the Michigan Condominium Act reserve fund requirements work, what the “new Michigan HOA law” proposals would change if adopted, and how both condo and HOA boards can use reserve studies and sound funding policies to protect their communities.
Legislation Link
Michigan Compiled Laws 559.205 – Reserve Fund
Minnesota’s Common Interest Ownership Act (MCIOA) sets clear expectations for how HOAs, condominiums, and other common interest communities should plan and fund future repairs. Rather than mandating a specific “reserve study” report, Minnesota law focuses on replacement reserves and requires boards to budget and re-evaluate those reserves on a recurring basis.
This guide explains what MCIOA actually requires, which associations are covered, how often boards must review reserves, and how reserve studies fit into the picture. It is written for Minnesota board members, association managers, and reserve professionals who want to stay compliant, avoid surprise special assessments, and protect long-term property values.
Legislation Link
Minnesota Common Interest Ownership Act 515B.3-1141
Minnesota Common Interest Ownership Act 515B.3-106
Minnesota Attorney General – Condominium and Townhome Associations
Mississippi takes a light touch approach to regulating homeowners associations and condominium associations. There is no single HOA statute and, importantly for boards and managers, there is no state law that specifically requires associations to conduct reserve studies or maintain reserve funds. That does not mean reserves are optional in practice. It simply means the “how much” and “how often” questions are left to your governing documents and board judgment.
This guide explains the current legal backdrop for reserve funds and reserve studies in Mississippi, highlights the key statutes that frame association governance, and then moves into practical, best practice guidance for boards and managers. Whether you operate a condominium in Oxford or a single-family HOA on the Gulf Coast, you will find actionable steps to build a predictable long term funding plan and avoid special assessments.
Legislation Link
Mississippi Condominium Law – Mississippi Code 1972, Title 89, Chapter 9
Mississippi Nonprofit Corporation Act – Mississippi Code 1972, Title 79, Chapter 11
Missouri sits in a middle category for reserve regulation. The state has a detailed Uniform Condominium Act that talks about budgets, reserves and resale certificates, but it does not require associations to perform reserve studies or to fund reserves to any particular level. For most homeowners associations, there is no HOA specific statute at all. They operate under their covenants and the Missouri Nonprofit Corporation Act.
That combination gives Missouri boards a lot of freedom and a lot of responsibility. This guide builds on PropFusion’s existing Missouri law page and goes deeper into what the Missouri Uniform Condominium Act actually says, how it affects reserve funds and disclosures, and how boards and managers can use reserve studies and disciplined funding plans to protect their communities even in a state with no direct reserve study mandate.
Legislation Link
Missouri Uniform Condominium Act
Mo. Rev. Stat. § 448.3-102 – Powers of unit owners’ association
Mo. Rev. Stat. § 448.4-109 – Resales of units and required resale certificate disclosures
Montana law does not spell out formal reserve study or reserve funding requirements for homeowners associations or condominium associations. That can leave boards wondering how much they are expected to save, whether a reserve study is really necessary, and what “good practice” looks like in a state with minimal statutory guidance.
This guide pulls together Montana’s core statutes that affect community associations, the latest national summaries of reserve fund laws, and industry best practices. It is designed to help Montana boards, managers, and developers decide how often to commission reserve studies, how much to contribute to reserves, and how to communicate long-term funding plans to owners.
Legislation Link
Montana Unit Ownership Act – Condominiums
Nebraska law is straightforward on one key point: there is no statutory requirement for HOAs or condominium associations to conduct reserve studies or to fund reserves at any specific level. State statutes give unit owners associations the power to adopt budgets that include reserves, but they stop short of mandating how those reserves must be calculated or maintained.
That does not mean reserves are optional in practice. Boards in Nebraska still operate under the Nebraska Condominium Act and the Nebraska Nonprofit Corporation Act, both of which expect directors to manage the association’s affairs prudently. This guide builds on PropFusion’s existing Nebraska reserve fund page and provides a deeper look at what the law actually says, what it does not say, and how to design a professional reserve study and funding plan that protects your community over the long term.
Legislation Link
Nebraska Condominium Act – Neb. Rev. Stat. §§ 76-825 to 76-894
Neb. Rev. Stat. § 76-860 – Unit owners association; powers
Nebraska Nonprofit Corporation Act – Neb. Rev. Stat. § 21-1901 et seq.
Nevada is one of the strictest states in the U.S. when it comes to HOA and condominium reserve funding. Under Nevada’s Common-Interest Ownership Act, most common-interest communities must maintain “adequate” reserve funds and commission regular reserve studies to make sure there is enough money to repair, replace, and restore major common-area components over time.
This guide explains the key Nevada reserve study and reserve fund requirements in plain language. You will learn which associations must comply, how often reserve studies are required, what must be included in the study, how “adequate reserves” are defined, what deadlines apply for filing Form 609 with the Nevada Real Estate Division, and how tools like PropFusion can help you stay compliant and avoid special assessments or regulatory issues.
Legislation Link
Nevada Revised Statutes, NRS 116.31152
New Hampshire does not currently mandate that homeowner associations or condominium associations perform reserve studies or fund reserves at a specific minimum level. That can create a false sense of freedom for boards that assume “no law” means “no need to plan.” In reality, the long-term health of a New Hampshire community still depends on disciplined reserve planning and transparent communication with owners.
This guide explains how New Hampshire’s legal framework, especially the New Hampshire Condominium Act (RSA 356-B), affects reserve funds and financial disclosures, what is and is not legally required, and which best practices boards should adopt anyway. Whether your association is a small townhouse condominium or a large mixed-use community, this page is designed to be your most practical reference on New Hampshire reserve fund requirements and reserve study expectations.
Legislation Link
New Hampshire Condominium Act (RSA 356-B)
New Jersey’s Planned Real Estate Development Full Disclosure Act (PREDFDA), amended by Senate Bills S2760 and S3992, requires condominium and HOA communities to complete a reserve study and maintain adequately funded reserves. The law applies to associations with major structural components and imposes specific deadlines, funding thresholds, and reporting requirements.
This guide covers who must comply, what the study must include, key deadlines, cost ranges, and step-by-step compliance guidance under the 2026 law.
Legislation Link
S2760 — Reserve Study Requirements (2022 session)
New Mexico’s laws give homeowner and condominium associations broad authority over their budgets and reserve funds but stop short of requiring formal reserve studies or specific minimum reserve balances. That can leave boards wondering how much they are expected to set aside and what “good practice” looks like in this state.
This guide explains how the New Mexico Condominium Act and the Homeowner Association Act affect reserve planning, what is and is not legally required, and how boards can still use professional reserve studies to manage long term capital projects responsibly. It builds on the high level overview from your current New Mexico law page and goes deeper into statutes, disclosure obligations, and practical planning steps for boards and managers.
Legislation Link
New Mexico Homeowner Association Act
New York does not require every HOA, condominium, or co-op to perform a formal reserve study. Instead, reserve obligations come from a patchwork of Real Property Law provisions, Business Corporation Law fiduciary duties, NYC conversion rules, and lender requirements that function as de facto mandates.
This guide covers what New York law requires today, how proposed bills S7600 and A8945 would change the landscape, and how boards can use reserve studies to satisfy fiduciary duties and protect property values.
Legislation Link
NY Real Property Law §339-V (Condo Bylaws)
North Carolina gives community associations broad authority to adopt budgets, collect assessments, and maintain reserve funds, but it stops short of requiring reserve studies or mandating a specific reserve funding level. For HOAs and condominium associations, the Planned Community Act and Condominium Act authorize budgets for revenues, expenditures, and reserves, while condo public offering statements must disclose whether reserves for repairs and replacements are included in the budget and in what amount.
Because there is no statutory requirement to conduct reserve studies or fund reserves, financial outcomes vary widely between communities. Well-run associations in North Carolina still treat reserve planning as essential: they commission periodic reserve studies, keep contributions at levels that avoid chronic underfunding, and clearly communicate the plan to owners. This guide explains the current law, clarifies common misconceptions, and outlines practical steps for North Carolina boards that want stable, predictable reserve funding without waiting for the legislature to step in.
Legislation Link
North Carolina Planned Community Act
North Dakota is one of the states where there is no statute forcing homeowner associations or condominium associations to commission a reserve study or to maintain a specific level of reserve funds. That does not mean reserves are optional in practice. Boards are still expected to plan for major repairs and replacements, avoid repeated special assessments, and demonstrate financial stability to owners, buyers, and lenders.
This guide explains how reserve studies and reserve funds work in North Dakota, what state law does and does not require, and how boards can follow industry best practices even without a legal mandate. You will also find practical steps for commissioning a reserve study, setting funding targets, and using PropFusion’s network of reserve professionals to support your community.
Legislation Link
North Dakota Condominium Ownership of Real Property
Ohio has some of the clearest reserve funding rules in the country, but they are often misunderstood. Many boards still think of reserves as optional or treat 10 percent of the budget as a magic number.
In reality, Ohio’s condominium and planned community statutes require boards to budget reserves in an amount that is adequate to repair and replace major capital items without surprise special assessments, unless owners consciously vote each year to waive that requirement.
At the same time, Ohio does not mandate reserve studies by law. That does not mean you can ignore them. A professional reserve study is the most reliable way for an Ohio board to prove its reserves are “adequate,” set contributions above the 10 percent floor where necessary, and give owners the information they need if reserves are to be waived.
This guide explains exactly how Ohio condominium law reserve funds work, what Ohio HOA reserve requirements look like in practice, and how your board can use reserve studies and better tools to stay ahead of the law instead of reacting to crises.
Legislation Link
Ohio Condominium Act – Ohio Revised Code 5311.081
Oklahoma is one of the many states where there is no specific statute that forces homeowners associations or condominium associations to perform a reserve study or to maintain a minimum reserve fund. That does not mean reserves are optional in practice. Lenders, buyers, and prudent owners increasingly expect boards to have a clear plan for long-term repairs and replacements.
This guide explains how Oklahoma law treats reserves, what that means for your HOA or condominium association, and how to apply national best practices to build a stable reserve funding plan. It also outlines how reserve studies, while not mandated, can help your community avoid special assessments, smooth out contributions, and protect property values over time.
Legislation Link
Oklahoma Unit Ownership Estate Act
Oregon is one of the few states that expressly requires community associations to maintain a dedicated reserve account and to base those reserves on a formal reserve study and written maintenance plan.
The key rules are found in ORS 94.595 for planned communities and homeowners associations, and ORS 100.175 for condominium associations.
For Oregon boards, the message is simple but strict: you cannot treat reserves as an afterthought. The statutes require an initial reserve study and maintenance plan when the community is created, and then an annual process where the board either conducts a new reserve study or reviews and updates the existing one.
Done correctly, this framework helps associations avoid deferred maintenance, disruptive special assessments, and disputes with owners over financial mismanagement.
Legislation Link
Oregon Revised Statutes ORS 94.595
Pennsylvania does not impose a formal statewide requirement for homeowners associations or condominiums to commission reserve studies or to maintain a minimum reserve fund balance. Instead, the law focuses on how boards manage association finances, how reserve funds are handled, and what must be disclosed to buyers during a resale.
This guide explains what Pennsylvania statutes actually require for reserve funds, how the Uniform Condominium Act and Uniform Planned Community Act shape a board’s fiduciary responsibilities, and what best practices Pennsylvania communities follow for reserve studies and ongoing funding. It is intended for informational purposes only and is not legal advice.
Legislation Link
Pennsylvania Uniform Condominium Act
Rhode Island does not have a statute that explicitly requires homeowners associations or condominium associations to perform reserve studies or to maintain a specific minimum reserve fund balance. That can tempt boards to underfund long-term repairs or postpone planning altogether, but doing so exposes the association-and individual directors-to significant financial and legal risk.
This guide explains how Rhode Island law treats reserves today, where the gaps are, and what prudent boards should do to protect their communities.
We break down the Rhode Island Condominium Act provisions that touch reserves, boards’ fiduciary obligations, and practical reserve study best practices tailored to Rhode Island.
Legislation Link
Rhode Island Condominium Act – Article III: Management of Condominium
Rhode Island Condominium Act – Article IV: Protection of Condominium Purchasers
South Carolina is one of the many states where homeowners’ associations (HOAs) and condo associations are not legally required to commission reserve studies or maintain a minimum reserve fund balance. That does not mean reserves are optional in practice. Boards are still responsible for maintaining common elements, budgeting responsibly, and avoiding preventable special assessments and deferred maintenance.
This guide explains how South Carolina’s HOA and condo laws intersect with reserve funds and reserve studies, what is and is not required by statute, and what boards should do in practice to protect their communities. It is written for board members, association managers, and owners who want a clear, practical explanation of the rules and best practices rather than dense legal commentary.
Legislation Link
South Carolina Homeowners Association Act
South Dakota is a “no-mandate” state when it comes to reserve studies and reserve funds. There is no statute that requires homeowners associations or condominium associations to commission a reserve study or to maintain reserves at a specific level. Multiple national surveys of state reserve laws confirm that South Dakota has no statutory requirement to conduct a reserve study and no statutory requirement to fund reserves.
That lack of a mandate does not mean reserves are optional in practice. Boards are still responsible for maintaining common property, budgeting responsibly, and avoiding avoidable financial shocks. This guide explains how South Dakota’s condominium and nonprofit corporation laws frame association governance, what “no statutory requirement” really means, and how to apply national best practices so your community remains financially stable.
Legislation Link
South Dakota Condominium Law
Tennessee has moved into the group of states that regulate reserve studies for common-interest communities, but it does so in a very targeted way. Under Tenn. Code Ann. § 66-27-403, as amended by Public Chapter 205 (SB 863 / HB 750), condominium boards overseeing common elements with an aggregate replacement cost above 10,000 dollars must obtain a reserve study and keep it updated on a set cadence.
At the same time, most traditional single-family HOAs in Tennessee still do not have a specific statutory mandate to perform reserve studies, even though boards remain responsible for prudent financial planning under the Tennessee Nonprofit Corporation Act and other general duties.
This guide explains exactly what the Tennessee reserve study law requires for condominiums, how it differs for HOAs, and how boards in both types of communities can use reserve studies and funding plans to protect owners, property values, and their own liability.
Legislation Link
Tennessee Public Chapter 205 (2023) – Amendment to Tenn. Code Ann. § 66-27-403
Tennessee House Bill 750 / Senate Bill 863 (113th General Assembly)
Tennessee Condominium Act of 2008 – Tennessee Condominium Act of 2008
Texas boards often hear conflicting messages about “Texas HOA reserve fund laws,” “condo reserve fund requirements,” or “Texas reserves certification.” Some sources imply strict rules, while others say there are almost none. The truth sits in between: Texas law does not mandate reserve studies or a specific reserve balance, but it does regulate how associations budget, disclose reserves, and meet their fiduciary duties to owners.
This guide explains the current legal landscape for reserves and reserve studies in Texas-including what the Texas Property Code requires for condominiums, the framework that applies to other HOAs and property owners’ associations, and why best-practice capital planning still matters even without a statutory mandate. It is written for board members, association managers, and condo boards who want clarity and a practical roadmap, not legal jargon.
Legislation Link
Texas Property Code, Chapter 82 – Uniform Condominium Act
Utah is one of the few states that explicitly regulates how community associations plan for future capital repairs through a “reserve analysis” and reserve fund disclosure requirements. If your community is organized as a condominium or a planned community with an owners association, you are very likely subject to Utah’s reserve study framework under Utah Code Title 57.
This guide explains which Utah associations must perform a reserve analysis, how often it must be updated, what has to be disclosed to owners, and how boards should think about funding their reserve accounts. It is written for board members, managers, and developers who need a practical, up to date explanation of Utah HOA reserve study requirements and reserve fund laws, not just a citation to the statute.
Legislation Link
Utah Condominium Ownership Act – Utah Code Ann. § 57-8-7.5
Vermont does not require HOAs or condominium associations to perform formal reserve studies or to fund their reserve accounts to any specific level. Instead, the Vermont Common Interest Ownership Act (VCIOA) gives associations the power to adopt budgets that include reserves and requires certain disclosures to buyers, but leaves the specifics of reserve planning to each community.
That flexibility can be a double-edged sword. Boards that plan proactively and base contributions on a professional reserve study can keep dues predictable, avoid disruptive special assessments, and protect property values. Boards that treat “no mandate” as “no need” for reserves risk deferred maintenance, owner disputes, and potential challenges to their decision-making. This guide walks through what Vermont law actually says, what it does not say, and how boards can build a sound reserve strategy anyway.
Legislation Link
Vermont Common Interest Ownership Act – 3-102
Virginia is one of the strictest states in the country when it comes to reserve studies and reserve fund planning. For most homeowners’ associations, property owners’ associations, and condominium associations, reserve funding is not simply a best practice. It is a legal obligation that is built directly into the Virginia Property Owners’ Association Act and Virginia Condominium Act.
Under Virginia Code §§ 55.1-1826 and 55.1-1965, associations must commission a reserve study at least once every five years, review the results annually, and adjust their budgets and assessments as needed to maintain adequate reserves for capital components.
This guide explains exactly what is required, how often reserve studies must be done, what must appear in your annual budget, and what practical steps boards can take to stay compliant and financially stable.
Legislation Link
Virginia Code § 55.1-1826 – Property Owners’ Association Act
Washington is one of the strictest states in the country when it comes to reserve study requirements for community associations. Between the Washington Condominium Act (RCW 64.34), the Homeowners’ Associations Act (RCW 64.38), and the Washington Uniform Common Interest Ownership Act (RCW 64.90), most residential condominiums and homeowners’ associations that maintain meaningful common property are expected to prepare and regularly update a reserve study.
At the same time, the law has evolved quickly. Older sections of the Condo Act and HOA Act are now cross-referenced with RCW 64.90 and scheduled for repeal in 2028, and there are narrow exemptions for certain nonresidential or “nominal reserve cost” communities.
This guide cuts through that complexity so Washington boards can understand what the law actually requires today, how often reserve studies must be updated, when an association might be exempt, and how to use reserve studies to comply with Washington state HOA budget laws and protect owners from surprise special assessments.
Legislation Link
RCW 64.38.065 – Washington Homeowners’ Associations Act
RCW 64.34.380 – Washington Condominium Act
RCW 64.90.545 – Washington Uniform Common Interest Ownership Act
West Virginia does not currently mandate formal reserve studies or minimum reserve fund levels for most homeowners associations and condominiums. That does not mean reserves are optional or unimportant. Boards still have a fiduciary duty to plan for long-term repairs and replacements, and owners expect predictable assessments instead of last-minute special levies.
This guide explains how West Virginia law treats reserves, what is and is not required under the Uniform Common Interest Ownership Act (Chapter 36B of the West Virginia Code), and how your association can use reserve studies and structured funding plans to stay financially stable even without a statutory mandate.
Legislation Link
West Virginia Uniform Common Interest Ownership Act – Chapter 36B overview
West Virginia Uniform Common Interest Ownership Act – §36B-3-102
West Virginia Uniform Common Interest Ownership Act – §36B-4-103
Wisconsin takes a unique approach to reserve funds. The state does not require associations to conduct formal reserve studies or to fund reserves to any specific percentage. However, for condominiums governed by Chapter 703 of the Wisconsin Statutes, there is a detailed framework for “statutory reserve accounts,” including when they must be established and how they are managed.
Non-condominium HOAs and planned communities, which are not governed by Chapter 703, do not have a specific state reserve statute. Their reserve obligations come from their own declarations, bylaws, and fiduciary duties. This guide breaks down the Wisconsin condominium reserve account rules, clarifies what is and is not legally required, and outlines best practices for all Wisconsin associations that want to avoid special assessments and protect long-term property values.
Legislation Link
Wisconsin Condominium Act – Wis. Stat. § 703.163 Statutory reserve account
Wisconsin Condominium Act – Wis. Stat. § 703.161 Annual budget
Wisconsin Condominium Act – Wis. Stat. § 703.16 Common expenses and common surpluses
Wyoming takes a relatively light-touch approach to regulating homeowners associations and condominium associations. There is no standalone HOA act and, critically for boards and owners, no statute that requires a community association to perform a reserve study or to maintain a specific level of reserve funding.
That does not mean reserves are optional in practice. Major shared elements like roofs, parking areas, siding, boilers, and private roads still wear out, and boards still have a fiduciary duty to plan for those costs. In Wyoming, that duty is shaped primarily by two laws: the Wyoming Condominium Ownership Act (Title 34, Chapter 20 of the Wyoming Statutes) and the Wyoming Nonprofit Corporation Act (Title 17, Chapter 19), which governs many association corporations.
This guide explains how those statutes fit together, confirms that there is no reserve study mandate, and lays out practical standards that responsible boards can follow to protect their communities.
Legislation Link
Wyoming Condominium Ownership Act
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