Massachusetts HOA Reserve Fund Requirements (2026)
M.G.L. ch. 183A (Massachusetts Condominium Act)
No
Governed by your CC&Rs and bylaws
None
No statutory minimum — governing documents control reserve obligations
No
No state-mandated reserve disclosure; requirements come from your governing documents. Master deed and declaration of trust often include reserve provisions.
No
No legislative change after Surfside
- No state law requires a reserve study or minimum funding level
- Reserve obligations are determined by your master deed and declaration of trust
- Boards have a fiduciary duty to maintain common elements in good repair
- Fannie Mae and FHA guidelines apply regardless of state law — critical in Massachusetts's active condo market
- Document reserve fund decisions in meeting minutes
No state-mandated reserve disclosure; requirements come from your governing documents. Master deed and declaration of trust often include reserve provisions.
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.
- Commission a reserve study even without a legal mandate — lenders check during unit sales in Massachusetts's active condo market
- Aim for 70%+ funded status to avoid Fannie Mae and FHA flags
- Older Boston-area buildings may have significant deferred maintenance — conduct a thorough initial reserve study
- Review reserve contributions annually
Related tools for Massachusetts HOA boards
Managing reserves for a Massachusetts HOA? LotWize tracks your reserve contributions automatically.
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Start 14-Day Free TrialThis page provides general legal information about Massachusetts HOA reserve requirements only — not legal advice. Reserve laws vary by community type (planned community vs. condominium) and change frequently. Always consult a licensed Massachusetts HOA attorney and review your governing documents for advice specific to your situation. Statute citations accurate as of 2026.