An annual or biennial refresh of the reserve study that recalculates funding needs without a full inspection.
A reserve study update recalculates reserve funding projections based on updated cost estimates, actual reserve contributions and expenditures since the last full study, and any changes to component assumptions — without conducting a new on-site inspection. Updates can be performed with a site visit (for a visual condition check) or as a paper-only update using prior data. Most boards commission a full study every three to five years and rely on annual paper updates in between. The update produces a revised funding plan, an updated percent-funded figure, and recommended annual contribution adjustments for the next budget cycle.
Skipping annual updates means the board is budgeting based on stale data. Inflation, construction cost changes, and actual spending patterns can shift the funding picture significantly from year to year.
Reserve Study
A professional analysis of an HOA's physical assets and reserves, used to set annual reserve contributions.
Reserve Fund
Money set aside by an HOA for future major repairs and replacements of common elements.
Percent Funded
A metric showing how close the HOA's actual reserve balance is to the ideal 'fully funded' amount.
Annual Budget
The HOA's year-ahead financial plan detailing expected income and expenses for both operations and reserves.
LotWize handles reserve study update 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.