A governance framework that stops short
- The two acts provide a framework for governing condominiums.
- They are silent on long-term reserve planning.
- No state law requires a study, a minimum reserve balance or reserve disclosure at resale.
RESERVE STUDIES IN ARKANSAS
Arkansas reserve planning
SmartProperty® helps Arkansas HOAs and condominiums plan and fund their reserves. State regulation is minimal: no study, no minimum balance and no reserve disclosure at resale, so the board’s duty of care carries the weight.
Jan 4, 2027Fannie Mae’s 15% reserve minimum takes effect for condo loans
No resale disclosureState law doesn’t require reserve information to be shared at resale
No mandateArkansas law doesn’t require a reserve study or a minimum balance
WHAT ARKANSAS REQUIRES
Minimal state regulation.
The duty of care fills the gap.
Arkansas sets a framework for governance and leaves long-term reserve planning to the board.
Informed decisions are the standard
- Board members must act in the best interest of the association and its members.
- The duty of care means making informed decisions with the care a prudent person would use.
- That includes a reasonable inquiry into the association’s finances and property condition.
WHY IT MATTERS IN ARKANSAS
Silence in the statute
puts the weight on the board.
Owners can sue over a surprise assessment
If a roof fails and the board levies a large special assessment, homeowners may claim negligence and mismanagement. A professional study shows the decision rested on expert analysis, not guesswork.
Lenders look even without a state rule
With no state disclosure rule, lenders are often the first to scrutinize reserves. A condo with no study and weak reserves can land on a lender’s ineligible list, which cuts buyers down to cash only.
A low-dues board can pass costs to new owners
When a board skips reserves to keep dues low, the owner who happens to be there when a roof fails pays for years of wear. A study spreads that cost across the owners who use it.
HOW SMARTPROPERTY HELPS
Compliance is the floor.
Funding stability is the goal.
Full reserve studies and updates
A site-inspected study to start, then updates as costs and conditions change, so the board always has a current plan.
A plan that stays current
The Living Reserve Study® updates as projects are completed and costs change, so your plan is ready for the next update or budget.
Funding options the board can compare
Model higher contributions, special assessments, loans or lines of credit side by side before you take a recommendation to owners.
Numbers you can explain
Atlas shows the cost data and useful-life assumptions behind every figure, so boards can answer owner questions with confidence.
TALK WITH SMARTPROPERTY ABOUT ARKANSAS
Get your Arkansas reserve plan
on solid ground.
See how the Living Reserve Study® works for your community, or tell us about your association and we’ll put together a proposal.
Photo via Wikimedia Commons: Little Rock skyline: Quintin Soloviev, CC BY 4.0. Arkansas law summary is not legal advice. Confirm your association’s obligations with Arkansas counsel.