Washington HOA Reserve Fund Requirements (2026)

• Reserve study required for condominiums per SB 5796 (2024); update every 3 years
• Annual budget must include reserve study findings and current funding status
• Unit owners may request the full reserve study document
• Board must follow reserve study recommended funding plan
• Fannie Mae and FHA guidelines apply regardless of state law

Reserve study results and funding status must be disclosed to unit owners annually as part of the annual budget. Owners may request the full reserve study.

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.

• Washington's SB 5796 (2024) requires reserve studies for condominiums every 3 years — confirm your compliance timeline
• Commission a qualified reserve study professional promptly if you have not done so recently
• Aim for 70%+ funded status to avoid Fannie Mae and FHA flags
• Disclose reserve study findings in your annual budget as required
• Washington's wet climate and seismic risk create unique capital planning considerations — use a reserve professional familiar with Pacific Northwest conditions

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