A budget that explains its reserves
- The executive board must give owners the proposed annual budget.
- It must include a statement of the amount held in reserve accounts.
- It must also state the basis on which those reserves are calculated and funded.
RESERVE STUDIES IN CONNECTICUT
Connecticut reserve planning
SmartProperty® helps Connecticut HOAs and condominiums plan and fund their reserves. Connecticut doesn’t require a study, but its common interest law requires the board to explain how reserves are calculated and funded, and a study is the defensible way to do that.
Jan 4, 2027Fannie Mae’s 15% reserve minimum takes effect for condo loans
CGS § 47-261eThe proposed budget must state the reserves held and the basis for calculating them
No mandateConnecticut law doesn’t require a reserve study or minimum funding
WHAT CONNECTICUT REQUIRES
No study required by name.
A documented basis is.
The Connecticut Common Interest Ownership Act (CIOA) doesn’t name a reserve study, but it asks the board to back up its numbers.
No mandate, no minimum, no licensing
- The statutes don’t require a professional, third-party reserve study.
- There are no state-imposed minimum reserve funding levels, and no state license or certification for reserve specialists.
- SB 816 (2025) would have required an annual study of reserve funds, but it was listed as dead in June 2025.
WHY IT MATTERS IN CONNECTICUT
A number pulled from thin air
doesn’t meet the statute.
The “basis” has to be documented
Section 47-261e asks for the basis on which reserves are calculated and funded. An arbitrary figure fails that test, while a study that analyzes component wear, useful life and replacement cost supports it.
Lender eligibility matters more than the statute
For most Connecticut communities, losing conventional mortgage eligibility is the bigger risk. Fannie Mae and Freddie Mac accept a study less than three years old in place of the percentage test if the budget funds its highest recommended contribution.
Annual updates keep the disclosure honest
Our guide recommends a full onsite study every three to five years and a financial update each year in between, so every annual budget has an accurate basis for its reserve figure.
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 CONNECTICUT
Get your Connecticut 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: Hartford skyline: Quintin Soloviev, CC BY 4.0. Connecticut law summary is not legal advice. Confirm your association’s obligations with Connecticut counsel.