Connecticut HOA Reserve Fund Requirements (2026)
Conn. Gen. Stat. §§ 47-200 et seq. (Common Interest Ownership Act); P.A. 22-37 (2022 reserve study law)
Law changed after Surfside — new requirements apply
Connecticut enacted P.A. 22-37 in 2022 following the Surfside collapse, requiring reserve studies for condominiums with 4 or more units. This was a significant expansion of reserve requirements.
Yes
Reserve study required for condos with 4 or more units; frequency per governing documents (5 years recommended by statute)
None
No statutory minimum funding percentage; board must follow the reserve study's recommended funding plan
Yes
Reserve study results and current funding status must be disclosed to members annually as part of the financial report.
Yes
New law passed after June 2021
- Reserve study required for condominiums with 4 or more units (P.A. 22-37, effective 2022)
- Reserve study results must be disclosed to members in the annual financial report
- Board must follow the reserve study's recommended funding plan or document reasons for deviation
- No statutory minimum funding percentage, but 70%+ is the industry benchmark
- Fannie Mae and FHA guidelines apply regardless of state law
Reserve study results and current funding status must be disclosed to members annually as part of the financial report.
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.
- P.A. 22-37 applies to condos with 4+ units — confirm whether your association is covered
- Commission a reserve study from a qualified professional to comply with the 2022 law
- Aim for 70%+ funded status to avoid Fannie Mae and FHA flags
- Include reserve study findings in your annual financial disclosure to members
- Review the recommended funding plan in your study and adjust contributions accordingly
Related tools for Connecticut HOA boards
Managing reserves for a Connecticut HOA? LotWize tracks your reserve contributions automatically.
LotWize helps self-managed HOA boards stay on top of reserve contributions, annual budget preparation, and state-mandated reserve planning — without hiring a property management company.
Start 14-Day Free TrialThis page provides general legal information about Connecticut HOA reserve requirements only — not legal advice. Reserve laws vary by community type (planned community vs. condominium) and change frequently. Always consult a licensed Connecticut HOA attorney and review your governing documents for advice specific to your situation. Statute citations accurate as of 2026.