Key takeaways
Early 2026 bills in Florida, Colorado, Maryland and South Carolina pushed for tighter HOA and condo reserve funding, reserve studies and financial transparency. Only Colorado HB26-1099 became law, in narrower form; Florida SB 722, Maryland SB 919 and South Carolina H 5204 did not pass. The trend still points boards toward current reserve studies and documented funding plans.
- Florida SB 722, which would have limited mandatory SIRS mainly to condos six stories and taller, died in committee on March 13, 2026.
- Colorado HB26-1099, signed April 13, 2026, requires developers to fund an independent 30-year reserve study before control passes to the association.
- Maryland SB 919 would have required a 51% owner vote for loans or credit lines to fund reserves and online records for HOAs with at least 100 lots; it did not pass.
- South Carolina H 5204 would have required reserve studies every three years and fully funded reserves for new HOAs; it died in committee.
Written for: HOA & condo board members, Community association managers, Management company executives
Every new legislative session brings changes that ripple through community associations. And if the first two months of the year are any indication, 2026 is shaping up to be a major year for reserve funding transparency, capital planning accountability, and long-term infrastructure oversight.
Across the country, lawmakers are tightening expectations around how associations plan for major repairs, fund reserves, and communicate financial health to homeowners.
For Boards and managers, this trend signals one thing clearly: capital planning is no longer optional. It’s operational infrastructure.
Here are four key legislative developments from January and February that could impact how communities manage reserves and long-term projects. Even if your community association(s) don’t reside in one of these states, you should take note: laws are going to continue passing, and rather than waiting for new legislation, it’s best to be prepared for new legislation.
October 2026 update: All four sessions have ended. Colorado HB26-1099 became law in a narrower form; the Florida, Maryland and South Carolina bills did not pass. Each section below notes the final outcome. The trend toward stronger reserve rules continues, and the planning advice still applies.
Florida SB 722: Height-Based Reserve Requirements May Change the Game
Final outcome: SB 722 died in the Senate Regulated Industries Committee on March 13, 2026. Florida's existing SIRS rules, including the bar on waiving reserves for SIRS components, remain in place. Bill history.
A proposed update to condominium reserve legislation in Florida would adjust how Structural Integrity Reserve Studies (SIRS) apply across buildings.
The bill proposes that mandatory SIRS requirements apply primarily to condominiums six stories and taller, while buildings under six stories could potentially waive or reduce reserve contributions with a majority vote of owners.
At first glance, that may sound like flexibility for associations. But it introduces a new challenge: financial decision volatility.
If boards reduce reserve funding to keep dues low in the short term, communities may face larger special assessments or financing needs when infrastructure work becomes unavoidable.
What this means for Boards
COA Boards should stay compliant with current law, model both full-funding and reduced reserve scenarios, and document the tradeoffs. If a waiver vote is proposed, prepare clear guidance for homeowners outlining risks, timelines, and potential future costs.
Even if SB 722 ultimately allows some condominiums to reduce or waive reserve contributions, boards should still perform these analyses of fully funded reserve contributions, reduced funding scenarios, and deferred maintenance risk timelines. The reason is simple: the bill changes funding flexibility, but not the physical reality of building maintenance.
Where SmartProperty® helps
SmartProperty®’s Capital Planning Tool becomes especially valuable under SB 722. Because the bill could allow some associations to waive or reduce reserve contributions, boards will need to clearly show homeowners what those decisions mean financially.
With SmartProperty®, boards can test multiple funding strategies, such as fully funding reserves, partially funding them, or delaying contributions, and instantly see the downstream impact on assessments, reserve balances, and project timelines. Instead of debating hypotheticals, communities can present real projections that help homeowners understand the long-term consequences before voting on reserve funding decisions.
Colorado: New Communities May Start with Stronger Reserves
Final outcome: HB26-1099 was signed on April 13, 2026 (2026 Session Laws, Chapter 42), but in narrower form. The final law requires the developer to fund an independent 30-year reserve study before control passes to the association. The study-before-first-sale, phase-by-phase updates and 1.5% turnover deposit described below were removed before passage. Bill history.
Colorado House Bill HB26-1099 aims to strengthen reserve planning before homeowners ever move in.
The proposal would require developers to:
- Fund an independent 30-year reserve study before the first sale
- Update reserve projections as development phases are completed
- Deposit 1.5% of the fully funded reserve amount into the reserve account at turnover
This is a major shift from how many associations start today, where they often inherit incomplete documentation or underfunded reserves when developer control ends.
What this means for Boards
As introduced, HB26-1099 would have significantly changed how new communities transition from developer control to homeowner governance. Instead of starting operations with incomplete infrastructure documentation or underfunded reserves—a common issue in many new associations—communities would begin with a clearer financial and physical asset picture.
Under the proposed framework, developers would be responsible for commissioning an independent reserve study early in the lifecycle of the community and contributing initial funding toward reserves before control transfers to the association. For Boards, this means inheriting a community that already has:
- A 30-year infrastructure outlook outlining major repair and replacement timelines
- Initial reserve funding that supports those projections
- Greater transparency around long-term capital obligations
This approach helps prevent a pattern that many new communities experience today: operating for several years with minimal reserve funding, only to discover significant capital needs once the developer exits. When boards begin with stronger reserve projections and funding discipline, they are far less likely to face early-life special assessments, emergency loans, or deferred maintenance issues. It also gives Boards a clearer framework for communicating long-term financial expectations to homeowners from the very beginning.
There are, however, a few potential downsides that Boards need to consider. Requiring developers to commission reserve studies and contribute to reserves may slightly increase upfront home prices or early HOA and COA assessments. Reserve projections also rely on assumptions about asset lifespan, inflation, and construction quality, which may change once the community is operating. Additionally, developer-provided reserve studies may require review or updates after turnover to ensure they accurately reflect the condition of community assets. For this reason, Boards should view the initial reserve study as a strong starting point, but still reassess assumptions and integrate it into an ongoing capital planning strategy once homeowners assume control.
Where SmartProperty® helps
Legislation like HB26-1099 means many communities will begin with stronger reserve projections, but those projections are still based on assumptions about asset lifespans, inflation, and construction quality that can change once the community is operating. SmartProperty® helps boards manage this uncertainty through the proprietary Living Reserve Study®. Boards can update asset conditions, adjust component lifespans, and track real project costs as they emerge. The platform also allows communities to model funding scenarios and instantly see how changes affect reserve balances, assessment levels, and project timelines. If assessments need to increase to stay aligned with infrastructure needs, boards can clearly show homeowners the data behind those decisions, helping build transparency and avoid surprises.
Maryland: Reserve Funding Transparency Becomes Paramount
Final outcome: SB 919 did not pass; it received a committee hearing on March 11, 2026, and its cross-file, HB 1600, also stalled. Bill history.
Maryland Senate Bill 919, introduced in February, would have strengthened oversight of how homeowners associations fund reserves and share records. Maryland law already requires a reserve funding plan and repayment within five years of reserve funds used for other purposes.
Under the bill, associations would have needed to:
- Obtain approval from lot owners in good standing holding at least 51% of the votes before taking out a loan or line of credit to fund reserves
- Post financial and governing records online for associations with at least 100 lots, to improve homeowner access and transparency
What this means for Boards
If enacted, reserve funding decisions will need to be more deliberate and transparent. Boards will increasingly need to ensure that reserve strategies are clearly documented, communicated in an easily digestible manner, and supported by financial projections and reserve study data.
Communities that cannot clearly explain how their reserve funding plan supports future infrastructure needs may face greater difficulty gaining homeowner approval for major projects or financing decisions.
Where SmartProperty® helps
SmartProperty®’s Financial Health Report helps boards present reserve funding strategies in a clear, visual format. By showing reserve balances, funding levels, and upcoming capital projects in one place, Boards can easily communicate the reasoning behind financial decisions. That level of transparency makes it easier for homeowners to understand how their community is planning for the future, and builds clarity when Boards need approval for projects, funding changes, or financing.
South Carolina: Reserve Studies Every Three Years
Final outcome: H 5204 died in the House Labor, Commerce and Industry Committee, where it was referred on February 18, 2026, with no further action before the 2025-2026 session ended. Bill history.
In South Carolina House Bill 5204, lawmakers are proposing a more structured approach to reserve planning for community associations. The bill would require associations to conduct regular reserve studies and provide clearer financial disclosures to homeowners about long-term infrastructure obligations.
Under the proposal, associations would be required to:
- Conduct or update reserve studies on a regular schedule to keep infrastructure projections current - including every three years for newly formed HOAs
- Work toward fully funded reserves over time, with a phased timeline designed to help communities gradually reach stronger funding levels
- Provide greater transparency in budgets, including disclosure of reserve contributions and any gaps between recommended and actual funding
The goal is to reduce the risk of communities quietly accumulating deferred maintenance and to ensure homeowners have visibility into the long-term financial health of their association.
What this means for Boards
If enacted, Boards will need to show a clearer connection between reserve studies, annual budgets, and capital project planning. Associations will increasingly need to demonstrate:
- How reserve contributions align with reserve study recommendations
- Whether the annual budget follows or deviates from recommended funding levels
- How major capital projects are tracked, scheduled, and executed
In practice, this means reserve planning can no longer live in a standalone report; it must be integrated into ongoing financial and operational decision-making.
Where SmartProperty® helps
SmartProperty®’s Living Reserve Study® ties reserves directly to capital projects, budgets, and vendor documentation, allowing Boards to manage infrastructure planning in one place. By linking reserve study components to real projects and funding schedules, the platform creates a clear audit trail from planning to execution. As legislation increases oversight and transparency requirements, that level of visibility helps boards stay organized, communicate with homeowners, and demonstrate responsible financial management.
The Bigger Trend: Living Reserve Planning
If there’s a theme across all these legislative proposals, it’s this:
Reserve studies are no longer static documents.
They’re becoming dynamic operational tools that boards must use to guide funding decisions, communicate financial health, and plan infrastructure investments.
The communities that adapt fastest will move beyond the traditional once-every-five-years study and embrace living reserve planning, where asset inventories, capital projects, and financial forecasts stay continuously updated.
That’s exactly what SmartProperty® was built for.
Legislation shaping reserve funding and capital planning is evolving across the country. Want to see what’s changing in your state? Explore our interactive legislative guide to stay ahead of the rules impacting your communities.
