Hawaii HOA Reserve Fund Requirements (2026)
H.R.S. §§ 514B-1 et seq. (Hawaii Condominium Property Act)
Yes
Reserve study required for condominiums; update at least every 3 years
None
No statutory minimum funding percentage, but reserve study must include a recommended funding plan that the board is required to follow or document reasons for deviation
Yes
Annual budget must include current reserve balance, reserve study findings, and recommended annual contribution. Disclosure to all unit owners is required.
No
No legislative change after Surfside
- Reserve study required for condominiums; must be updated at least every 3 years
- Annual budget must include reserve balance, study findings, and recommended contribution
- Board must follow or document deviation from the reserve study funding plan
- No statutory minimum funding percentage, but study-recommended funding is effectively required
- Fannie Mae and FHA guidelines apply regardless of state law
Annual budget must include current reserve balance, reserve study findings, and recommended annual contribution. Disclosure to all unit owners is required.
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.
- Hawaii law requires a reserve study for condominiums — ensure you are compliant
- Update your reserve study at least every 3 years as required by statute
- Hawaii's tropical climate and salt air can accelerate component wear — build in appropriate contingency
- Aim for 70%+ funded status to avoid Fannie Mae and FHA flags
- Annual budget disclosure of reserve status is legally required — do not omit it
Related tools for Hawaii HOA boards
Managing reserves for a Hawaii 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 Hawaii HOA reserve requirements only — not legal advice. Reserve laws vary by community type (planned community vs. condominium) and change frequently. Always consult a licensed Hawaii HOA attorney and review your governing documents for advice specific to your situation. Statute citations accurate as of 2026.