Key takeaways
Whether a reserve study is legally required depends on the state and the type of association. About a dozen states, including California, Nevada, New Jersey, Maryland, Virginia, Washington and Utah, mandate studies for some or all associations. Others require reserve funds or disclosures without a study, and many have no mandate, though governing documents and lenders may still require one.
- California requires a full reserve study with a site visit every three years and an annual review under Civil Code § 5550.
- Nevada, New Jersey, Maryland, Virginia and Delaware require reserve studies at least every five years for covered associations.
- Florida requires a Structural Integrity Reserve Study at least every 10 years for condos and co-ops of three or more habitable stories.
- Fannie Mae Lender Letter LL-2026-03 raises the condo reserve minimum to 15% of assessment income for loan applications dated on or after January 4, 2027.
Written for: HOA & condo board members, Community association managers, Property management company executives
"Do we legally have to do this?" is usually the first question a board asks about a reserve study. The honest answer: it depends on your state, and often on whether you're a condominium or an HOA.
But the legal question is only one of three. Even where state law is silent, a reserve study may be required by:
- Your governing documents. Many declarations and bylaws require reserves, and some require a study.
- Lenders. Fannie Mae's Lender Letter LL-2026-03 requires condo budgets to allocate at least 15% of assessment income to replacement reserves for loan applications dated on or after January 4, 2027. An association below that line can still qualify with a reserve study completed or updated within the past three years, but only if the budget funds the study's highest recommended contribution.
- Fiduciary duty. Boards in every state owe owners a duty of care. A current reserve study is the clearest evidence that a board planned responsibly.
How to read the matrix
- Study required — state law requires a reserve study (or equivalent reserve analysis) for at least some association types.
- Reserves required — state law requires a reserve fund or reserve budget, but not a study.
- Disclosure only — no study or funding mandate, but reserves must be disclosed in budgets, offering statements or resale certificates.
- No mandate — no statewide study, funding or reserve-disclosure requirement.
Each state links to our full guide, which covers the statutes, deadlines, disclosure rules and best practices.
50-state reserve study matrix
| State | Status | What the law requires | Update cycle |
|---|---|---|---|
| Alabama | No mandate | Condo Act grants power to budget for reserves only | — |
| Alaska | Disclosure only | Certified reserve assumptions in new-community offering statements | — |
| Arizona | Disclosure only | Resale disclosure of reserve totals and the most recent study (A.R.S. §§ 33-1806, 33-1260) | — |
| Arkansas | No mandate | Statutes silent on reserve planning | — |
| California | Study required | Davis-Stirling (Civ. Code § 5550); annual disclosure; AB 2050 minimum funding from Jan 1, 2032 | Full study with site visit every 3 yrs; annual review |
| Colorado | Reserves required (policy) | Written reserve policy (C.R.S. § 38-33.3-209.5); HB26-1099 developer 30-year study before turnover | — |
| Connecticut | Disclosure only | Budget must state reserve amount and basis (CGS § 47-261e) | — |
| Delaware | Study required (condos, co-ops) | DUCIOA: fully funded over 20 years; 5–15% budget minimums without a current study | At least every 5 yrs |
| Florida | Study required (condos/co-ops 3+ stories) | Structural Integrity Reserve Study (s. 718.112(2)(g)); non-waivable funding | At least every 10 yrs |
| Georgia | Disclosure only | Condo resale budgets disclose reserve line items (O.C.G.A. § 44-3-111) | — |
| Hawaii | Study required (condos) | Budgets rest on a reserve study; fund at least 50% (HRS § 514B-148) | Independent review every 3 yrs; annual update |
| Idaho | No mandate | No study or funding requirement | — |
| Illinois | Reserves required (condos) | "Reasonable reserves," waivable by two-thirds vote (765 ILCS 605/9(c)(2)) | — |
| Indiana | Reserves required (condos) | Condo assessments must fund a replacement reserve (IC § 32-25-4-4) | — |
| Iowa | No mandate | Chapter 499B silent on reserves | — |
| Kansas | No mandate | Statutes silent on reserve planning | — |
| Kentucky | Reserves required | Replacement reserve required, no set amount (KRS 381.870); resale disclosure | — |
| Louisiana | Disclosure only | Offering-statement disclosure; 2025 Planned Community Act basis-for-reserves | — |
| Maine | Disclosure only | Developer offering-statement disclosure | — |
| Maryland | Study required | Condos, HOAs ($10K+ components) and co-ops; HB 292 funding plan and year-end deposit | At least every 5 yrs |
| Massachusetts | Reserves required (condos) | Adequate, segregated replacement reserve (M.G.L. c. 183A § 10(i)) | — |
| Michigan | Reserves required (condos) | Reserve fund with 10%-of-budget minimum (MCL 559.205; Rule 559.511) | — |
| Minnesota | Reserves required | Adequate replacement reserves in budget (MCIOA § 515B.3-1141) | Reevaluated at least every 3 yrs |
| Mississippi | No mandate | Reserves permitted, not required | — |
| Missouri | Disclosure only | Resale certificate discloses reserves and planned capital expenditures | — |
| Montana | No mandate | Common expenses may include reserve allocations | — |
| Nebraska | No mandate | No reserve statute | — |
| Nevada | Study required | NRS 116.31152: registered Reserve Study Specialist; 30-year projection; adequate reserves | At least every 5 yrs; annual board review |
| New Hampshire | Disclosure only | Budget states reserve basis; resale disclosure | — |
| New Jersey | Study required | 30-year plan funded at 100%, or temporary 85% option (S3992) | At least every 5 yrs |
| New Mexico | Disclosure only | Resale certificate discloses reserve balance and allocation | — |
| New York | No mandate | Boards act under fiduciary duty | — |
| North Carolina | Disclosure only | Developer offering-statement disclosure | — |
| North Dakota | No mandate | Duty comes from governing documents only | — |
| Ohio | Reserves required | Adequate reserves in budget, waivable annually by owner majority (ORC 5311.081, 5312.06) | — |
| Oklahoma | No mandate | General fiduciary duty | — |
| Oregon | Study required | Reserve account plus maintenance plan and reserve funding analysis (ORS 94.595, 100.175) | Updated annually |
| Pennsylvania | No mandate | Budget power; fiduciary duty of ordinary prudence | — |
| Rhode Island | Disclosure only | New-condo offering statement includes reserve budget | — |
| South Carolina | No mandate | No study or funding requirement | — |
| South Dakota | No mandate | No reserve statute | — |
| Tennessee | Study required (condos) | Third-party study shared with owners (TCA § 66-27-403(g)); no funding minimum | At least every 5 yrs; annual review |
| Texas | Disclosure only | Resale certificates disclose reserves (§§ 82.157, 207.003) | — |
| Utah | Study required | Reserve analysis, budget line item, annual owner summary (§§ 57-8-7.5, 57-8a-211) | Every 6 yrs; review every 3 yrs |
| Vermont | Disclosure only | Offering-statement and resale disclosure | — |
| Virginia | Study required | Most HOAs and condos; annual board review and budget adjustment | At least every 5 yrs |
| Washington | Study required | Most condos and HOAs (RCW 64.34, 64.38, 64.90); no funding percentage | Site-inspection study every 3 yrs |
| West Virginia | Disclosure only | Developer offering-statement disclosure | — |
| Wisconsin | Reserves required (newer condos) | Statutory reserve account for condos created on/after Nov 1, 2004; opt-out allowed (§ 703.163) | — |
| Wyoming | No mandate | No reserve statute | — |
Laws change. Each linked guide shows its last-updated date. This matrix is general information, not legal advice; confirm specifics with your association's attorney.
Three patterns worth noticing
1. The trend is toward more regulation, not less. Florida's SIRS law, California's AB 2050, New Jersey's 30-year funding mandate, Maryland's HB 292 and Colorado's HB26-1099 all arrived in the last few years. Several more states have bills pending. A board that builds the habit now won't be scrambling when its state acts.
2. "No mandate" doesn't mean "no requirement." In states without a statute, your declaration, your insurer, a lender reviewing a unit sale, or a homeowner in litigation can all ask what your reserve plan was based on.
3. Condos are regulated more heavily than HOAs. Several states (Florida, Hawaii, Tennessee, Michigan, Massachusetts) apply their rules only to condominiums. If you're an HOA in one of those states, read your state guide closely before assuming you're exempt or covered.
What to do next
- Find your state above and read the full guide.
- Check your governing documents for reserve and study language.
- If you're a condominium, check where your budget stands against the 15% Fannie Mae minimum before January 4, 2027.
If you need a study that satisfies your state's rules, request a proposal and tell us your state; we scope every study to the statute that applies.
