District of Columbia HOA Reserve Fund Requirements (2026)

• Annual financial statements must be provided to unit owners under the DC Condominium Act
• No state law requires a professional reserve study
• No statutory minimum funding percentage
• Fannie Mae and FHA guidelines apply — critical in DC's high-value condo and co-op market
• Document reserve fund decisions in board meeting minutes

The DC Condominium Act requires annual financial statements to be provided to unit owners. Boards are expected to maintain adequate reserves and disclose reserve fund status.

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 — particularly impactful in DC's high-value condo market.

• Commission a reserve study even without a state mandate — DC's high-value condo market makes reserve health critical for unit sales and financing
• Aim for 70%+ funded status to avoid Fannie Mae and FHA flags
• Annual financial disclosure to owners is required — include reserve fund status
• Older DC buildings often have significant deferred maintenance — conduct a thorough initial reserve study

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