Utah HOA Reserve Fund Requirements (2026)

Utah Code Ann. §§ 57-8-1 et seq. (Utah Condominium Ownership Act); §§ 57-8a-101 et seq. (Community Association Act)

Reserve Study Required

Governed by your CC&Rs and bylaws

Minimum Funding

None

No statutory minimum — governing documents control reserve obligations

Disclosure Required

Yes

Utah's Community Association Act requires HOAs to provide an annual budget that includes reserve fund information. Members may request financial records including reserve fund details.

Post-Surfside Changes

No legislative change after Surfside

Key rules for Utah HOAs

Annual budget must include reserve fund information
Members may request financial records including reserve fund details
No state law requires a professional reserve study
No statutory minimum funding percentage
Fannie Mae and FHA guidelines apply regardless of state law

Disclosure requirements

Utah's Community Association Act requires HOAs to provide an annual budget that includes reserve fund information. Members may request financial records including reserve fund details.

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 Utah boards

Utah law requires reserve information in the annual budget — ensure your budget is compliant
Commission a reserve study even without a formal mandate — lenders check during unit sales
Aim for 70%+ funded status to avoid Fannie Mae and FHA flags
Utah's climate extremes — from snow loads to dry summers — affect component lifecycles differently than national averages
Review reserve contributions annually

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