HOA Reserve Fund Requirements by State (2026)
A reserve fund is an HOA's savings account for major repairs and replacements — roofing, pavement, elevators, pools. Without adequate reserves, boards face emergency special assessments that can blindside homeowners with thousands in unexpected costs.
The June 2021 Champlain Towers South collapse in Surfside, Florida prompted multiple states to enact or strengthen reserve study requirements. Find your state below to see what the law requires today.
6 states passed new reserve laws after Surfside (2021–2024): Connecticut, Florida, Maryland, New Jersey, Virginia, and Washington. These states have significantly expanded reserve study and funding requirements. Look for the "Law Updated" badge on state cards below.
Alabama
Study required
No
Disclosure required
No
Alaska
Study required
No
Disclosure required
No
Arizona
Study required
No
Disclosure required
Yes
Arkansas
Study required
No
Disclosure required
No
California
Study required
Yes
Disclosure required
Yes
Colorado
Study required
No
Disclosure required
Yes
Connecticut
Study required
Yes
Disclosure required
Yes
Delaware
Study required
No
Disclosure required
Yes
Florida
Study required
Yes
Disclosure required
Yes
Georgia
Study required
No
Disclosure required
No
Hawaii
Study required
Yes
Disclosure required
Yes
Idaho
Study required
No
Disclosure required
No
Illinois
Study required
No
Disclosure required
Yes
Indiana
Study required
No
Disclosure required
No
Iowa
Study required
No
Disclosure required
No
Kansas
Study required
No
Disclosure required
No
Kentucky
Study required
No
Disclosure required
No
Louisiana
Study required
No
Disclosure required
No
Maine
Study required
No
Disclosure required
No
Maryland
Study required
Yes
Disclosure required
Yes
Massachusetts
Study required
No
Disclosure required
No
Michigan
Study required
No
Disclosure required
No
Minnesota
Study required
No
Disclosure required
Yes
Mississippi
Study required
No
Disclosure required
No
Missouri
Study required
No
Disclosure required
No
Montana
Study required
No
Disclosure required
No
Nebraska
Study required
No
Disclosure required
No
Nevada
Study required
No
Disclosure required
Yes
New Hampshire
Study required
No
Disclosure required
No
New Jersey
Study required
Yes
Disclosure required
Yes
New Mexico
Study required
No
Disclosure required
No
New York
Study required
No
Disclosure required
Yes
North Carolina
Study required
No
Disclosure required
No
North Dakota
Study required
No
Disclosure required
No
Ohio
Study required
No
Disclosure required
No
Oklahoma
Study required
No
Disclosure required
No
Oregon
Study required
No
Disclosure required
Yes
Pennsylvania
Study required
No
Disclosure required
No
Rhode Island
Study required
No
Disclosure required
No
South Carolina
Study required
No
Disclosure required
No
South Dakota
Study required
No
Disclosure required
No
Tennessee
Study required
No
Disclosure required
No
Texas
Study required
No
Disclosure required
No
Utah
Study required
No
Disclosure required
Yes
Vermont
Study required
No
Disclosure required
No
Virginia
Study required
Yes
Disclosure required
Yes
Washington
Study required
Yes
Disclosure required
Yes
West Virginia
Study required
No
Disclosure required
No
Wisconsin
Study required
No
Disclosure required
No
District of Columbia
Study required
No
Disclosure required
Yes
Wyoming
Study required
No
Disclosure required
No
Reserve Fund Questions
What is a reserve study?
A reserve study is a professional assessment of an HOA's common elements — roof, pavement, pool equipment, elevators — that estimates their remaining useful life and replacement cost. It then calculates how much the association needs to contribute each year to fund those future replacements. Many states require them; all lenders care about them.
What percent funded should my HOA be?
The industry benchmark is 70% or higher. Fannie Mae and FHA both flag associations below 10% funded (the minimum threshold to avoid loan-level pricing adjustments), but lenders and buyers increasingly scrutinize anything below 70%. At 100% funded, the reserve account holds enough to replace all common elements at the end of their useful life with no special assessments required.
What changed after the Surfside collapse?
The June 2021 collapse of Champlain Towers South in Surfside, Florida killed 98 people and exposed widespread failures in condo reserve funding practices across the US. Florida subsequently enacted SB 4D (2022) and SB 154 (2023), eliminating the ability for owners to vote to waive reserves in condos 3 stories or taller. Connecticut, New Jersey, Maryland, Virginia, and Washington all enacted new reserve study requirements between 2022 and 2024 in response.
Can underfunded reserves block a unit sale?
Yes. Fannie Mae and FHA both require that HOAs allocate at least 10% of assessments to reserves. If an HOA falls below this threshold, individual unit buyers may be unable to obtain conforming mortgages, which significantly shrinks the buyer pool and depresses property values throughout the community. This applies regardless of what your state law does or does not require.
Managing HOA reserves? LotWize tracks contributions automatically.
LotWize helps self-managed HOA boards plan budgets, track reserve contributions, and stay ahead of lender requirements — without a property management company.
Start 14-Day Free TrialThis page provides general legal information only — not legal advice. Reserve laws vary by community type (planned community vs. condominium) and change frequently. Always consult an HOA attorney and your governing documents for advice specific to your situation. Last reviewed: 2026.