A metric showing how close the HOA's actual reserve balance is to the ideal 'fully funded' amount.
Percent funded is the primary measure of reserve fund health. It is calculated by dividing the current reserve balance by the fully-funded threshold — the theoretical balance that would perfectly match the accumulated depreciation of all reserve components on hand. A community at 100% funded has reserves exactly equal to the proportion of useful life already consumed on all its assets. The Community Associations Institute (CAI) recommends maintaining at least 70% funded. Communities below 30% are considered severely underfunded and face high special-assessment risk. The figure appears in reserve study reports and is typically disclosed to buyers in states with mandatory reserve disclosure laws.
Percent funded is the single number that best summarizes reserve health. Buyers, lenders, and FHA/VA loan programs scrutinize it. A community below 50% funded should prompt careful due diligence before purchasing.
Reserve Fund
Money set aside by an HOA for future major repairs and replacements of common elements.
Reserve Study
A professional analysis of an HOA's physical assets and reserves, used to set annual reserve contributions.
Special Assessment
A one-time charge levied on homeowners to cover a large, unplanned, or underfunded expense.
Contingency Fund
A budget line item or separate account for unexpected expenses not covered by reserves or the operating budget.
Reserve Fund Calculator
Use this free tool to calculate and analyze percent funded for your community.
Open toolLotWize handles percent funded tracking automatically — along with violations, ARC requests, meeting minutes, and homeowner communications, all in one platform built for self-managed HOAs.
Start 14-Day Free TrialThis page provides general information only — not legal or financial advice. HOA laws vary by state and community. Always consult your governing documents and an HOA attorney for guidance specific to your situation.