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Delaware HOA Reserve Fund Requirements (2026)

Del. Code Ann. tit. 25, §§ 81-101 et seq. (Delaware Uniform Common Interest Ownership Act)

Reserve Study Required

No

Governed by your CC&Rs and bylaws

Minimum Funding

None

No statutory minimum — governing documents control reserve obligations

Disclosure Required

Yes

Annual report must include financial statements and reserve fund balance. Members may request reserve fund documents.

Post-Surfside Changes

No

No legislative change after Surfside

Key rules for Delaware HOAs
  • Annual report must include financial statements with reserve fund balance
  • No state law requires a reserve study
  • No statutory minimum funding percentage
  • Reserve obligations are primarily determined by your CC&Rs and bylaws
  • Fannie Mae and FHA guidelines apply regardless of state law
Disclosure requirements

Annual report must include financial statements and reserve fund balance. Members may request reserve fund documents.

Lender requirements (Fannie Mae & FHA)

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.

Tips for self-managed Delaware boards
  • 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
  • Include reserve fund balance in your annual financial report as required by DUCIOA
  • Review reserve contributions annually

Related tools for Delaware HOA boards

Reserve Calculator

Check your reserve fund health

Budget Builder

Build a line-item annual budget

HOA Health Report

Assess your community's financial health

Managing reserves for a Delaware 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.

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This page provides general legal information about Delaware HOA reserve requirements only — not legal advice. Reserve laws vary by community type (planned community vs. condominium) and change frequently. Always consult a licensed Delaware HOA attorney and review your governing documents for advice specific to your situation. Statute citations accurate as of 2026.