Arizona HOA Reserve Fund Requirements (2026)
A.R.S. §§ 33-1801–33-1817 (Planned Communities Act); A.R.S. §§ 33-1201–33-1270 (Condominium Act)
No
Governed by your CC&Rs and bylaws
None
No statutory minimum funding requirement; boards are encouraged to maintain adequate reserves
Yes
Annual financial disclosure is required. HOAs must make financial statements available to members on request. Some governing documents require reserve fund line items in the annual budget.
No
No legislative change after Surfside
- No state law requires a reserve study or minimum funding level
- Annual financial statements must be made available to members on request
- Reserve obligations are primarily determined by your CC&Rs and bylaws
- Fannie Mae and FHA guidelines apply regardless of state law — low reserves can block unit sales
- Boards have a fiduciary duty to maintain common elements in good repair, which includes adequate reserves
Annual financial disclosure is required. HOAs must make financial statements available to members on request. Some governing documents require reserve fund line items in the annual budget.
Fannie Mae requires HOA to allocate at least 10% of assessments to reserves or demonstrate a 10% funding ratio. FHA requires similar. Low reserve funding can block unit sales and refinancing.
Fannie Mae requirement
Minimum 10% of assessments allocated to reserves, or a demonstrated 10% funding ratio. Associations below this threshold may face loan-level pricing adjustments or deal failure.
FHA requirement
Similar 10% minimum allocation. FHA-backed financing unavailable for units in HOAs that do not meet the threshold, reducing the buyer pool and depressing values.
- Arizona's heat and UV exposure accelerates roofing and exterior degradation — build aggressive replacement schedules
- Commission a reserve study even without a legal mandate — lenders check during unit sales
- Aim for 70%+ funded status to avoid Fannie Mae and FHA flags
- Provide reserve fund details in your annual budget to meet member disclosure expectations
Related tools for Arizona HOA boards
Managing reserves for a Arizona HOA? LotWize tracks your reserve contributions automatically.
LotWize helps self-managed HOA boards stay on top of reserve contributions, annual budget preparation, and best-practice reserve planning — without hiring a property management company.
Start 14-Day Free TrialThis page provides general legal information about Arizona HOA reserve requirements only — not legal advice. Reserve laws vary by community type (planned community vs. condominium) and change frequently. Always consult a licensed Arizona HOA attorney and review your governing documents for advice specific to your situation. Statute citations accurate as of 2026.