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HOA Reserve Fund Health Calculator

Enter your current reserve balance and major components to get your percent funded score, recommended annual contribution, and a 10-year projection.

Community details

Current reserve balance ($)

Number of units

Major components

Add roofs, pools, pavement, HVAC, and other long-lived assets.

No components added yet. Add your major assets above.

This tool provides general guidance only — not financial advice. Reserve funding requirements vary by state and community type. Consult a licensed reserve study professional for a certified analysis.

Quick answer

Percent funded compares your reserve balance to the fully funded target. Below 30% is critical, and 70% or higher is considered healthy by the Community Associations Institute (CAI) and most lenders. Example: a community that needs $500,000 in reserves but has saved $150,000 is 30% funded — underfunded and at risk of a special assessment.

How to read your HOA's percent-funded score

Percent funded	Rating	What it means
90%+	Excellent	Fully funded — minimal special-assessment risk
70–89%	Good	Healthy; meets CAI and lender thresholds
50–69%	Fair	Building reserves — monitor closely
30–49%	Poor	Underfunded — special-assessment risk
Below 30%	Critical	Severe shortfall — lender red flags on resale

Bands match the calculator's health score. A formal reserve study remains the most accurate basis for funding decisions.

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LotWize tracks reserve contributions, flags shortfalls, and generates component-by-component funding plans. Book a demo to see it in action.

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Frequently Asked Questions

Last updated June 2026

What is a reserve fund and why does my HOA need one?: A reserve fund is a savings account for major repairs and replacements — roofs, pavement, pool resurfacing, elevators, and similar big-ticket items. Without adequate reserves, the board faces two bad options when something breaks: a large special assessment that surprises homeowners, or deferred maintenance that worsens the problem and lowers property values.
What does 'percent funded' mean?: Percent funded compares your current reserve balance to what you would need to have 100% of all anticipated replacements fully funded right now. A 70%+ funded level is considered healthy. Below 30% is considered underfunded and may trigger lender red flags when homeowners try to sell or refinance.
What is the industry benchmark for reserve funding?: The Community Associations Institute (CAI) and most lenders (Fannie Mae, FHA) look for at least 10% of the annual budget allocated to reserves, and a funded ratio of 70% or higher. A reserve study performed by a licensed reserve analyst is the most accurate way to determine your target balance.
How do I add components to the calculator?: Click 'Add Component' to add a major asset. Enter the component name (e.g., 'Asphalt Parking Lot'), its full replacement cost, useful life in years, and current age. The calculator computes the annual contribution needed for each component and rolls it into your funding analysis.
Does a reserve study replace this calculator?: A professional reserve study is more accurate and legally sufficient for your records and lender requirements — it includes an on-site inspection, detailed component inventory, and formal funding plan. This calculator is a quick self-assessment tool to check your funding level and see what direction you need to move before commissioning a formal study.

LotWizeby Sanaf AI Solutions

Quick answer

How to read your HOA's percent-funded score

Percent funded	Rating	What it means
90%+	Excellent	Fully funded — minimal special-assessment risk
70–89%	Good	Healthy; meets CAI and lender thresholds
50–69%	Fair	Building reserves — monitor closely
30–49%	Poor	Underfunded — special-assessment risk
Below 30%	Critical	Severe shortfall — lender red flags on resale

Bands match the calculator's health score. A formal reserve study remains the most accurate basis for funding decisions.

Frequently Asked Questions

Last updated June 2026

What is a reserve fund and why does my HOA need one?

A reserve fund is a savings account for major repairs and replacements — roofs, pavement, pool resurfacing, elevators, and similar big-ticket items. Without adequate reserves, the board faces two bad options when something breaks: a large special assessment that surprises homeowners, or deferred maintenance that worsens the problem and lowers property values.

What does 'percent funded' mean?

Percent funded compares your current reserve balance to what you would need to have 100% of all anticipated replacements fully funded right now. A 70%+ funded level is considered healthy. Below 30% is considered underfunded and may trigger lender red flags when homeowners try to sell or refinance.

What is the industry benchmark for reserve funding?

The Community Associations Institute (CAI) and most lenders (Fannie Mae, FHA) look for at least 10% of the annual budget allocated to reserves, and a funded ratio of 70% or higher. A reserve study performed by a licensed reserve analyst is the most accurate way to determine your target balance.

How do I add components to the calculator?

Click 'Add Component' to add a major asset. Enter the component name (e.g., 'Asphalt Parking Lot'), its full replacement cost, useful life in years, and current age. The calculator computes the annual contribution needed for each component and rolls it into your funding analysis.

Does a reserve study replace this calculator?

A professional reserve study is more accurate and legally sufficient for your records and lender requirements — it includes an on-site inspection, detailed component inventory, and formal funding plan. This calculator is a quick self-assessment tool to check your funding level and see what direction you need to move before commissioning a formal study.