Homeowner Associations (HOAs) are often required to maintain a reserve fund to cover any significant, unexpected, or long-term maintenance or repair costs that the association may encounter. This is in addition to the regular annual budget for ongoing operational costs like landscape maintenance, utilities, and regular maintenance. These reserve requirements can vary depending on several factors, including the laws of the state where the association is located, the bylaws and governing documents of the HOA, and the specific needs and obligations of the association. The following is a summary of each state reserve fund law.

Click on one of the states below to see the state’s reserve study requirements.

• Blue states have a reserve study and/or funding requirement.
• Green states have statutory guidance for reserves, but do not have a statutory requirement.
• Orange states do not have statutory guidance or a statutory requirement of a reserve study.

Reserve studies (or a reserve schedule for condominium associations) are required in the following 11 states: California, Colorado, Delaware, Florida, Hawaii, Maryland, Nevada, Oregon, Utah, Virginia, and Washington State. Washington statutorily encourages associations to have a reserve study performed every three years unless doing so would impose an unreasonable hardship.

Reserve funding for condominium associations is required in the following 12 states: Connecticut, Delaware, Florida, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, Ohio, and Oregon.

Please remember that community associations are governed by state law, which can vary widely from state to state. This information is intended for general educational and informational purposes only; it may not reflect the most recent developments, and it may contain errors or omissions. The publisher does not warrant or guarantee that the information contained here complies with applicable law of any given state. It is not intended to be a substitute for advice from a lawyer, community manager, accountant, insurance agent, reserve professional, lender, or any other professional.