Virginia HOA Reserve Fund Requirements (2026)

• Reserve study required for common interest communities per HB 2178/SB 1175 (2023); update every 5 years
• Annual budget disclosure must include reserve study findings and current funding status
• Board must follow reserve study recommended funding or document deviation in meeting minutes
• No statutory minimum funding percentage, but 70%+ is the industry benchmark
• Fannie Mae and FHA guidelines apply regardless of state law

Reserve study results and current funding status must be disclosed to members as part of the annual budget disclosure required under the Common Interest Community Act.

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.

• Virginia's 2023 law (HB 2178/SB 1175) requires reserve studies every 5 years — confirm your compliance schedule
• Commission a qualified reserve study professional to ensure the study meets statutory requirements
• Aim for 70%+ funded status to avoid Fannie Mae and FHA flags
• Disclose reserve study results in your annual budget as required
• Consult an HOA attorney to verify the exact applicability and effective dates for your association

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