SmartProperty® helps Delaware HOAs and condominiums plan and fund their reserves. Delaware’s Uniform Common Interest Ownership Act (DUCIOA) requires a current study for condominiums and cooperatives and sets funding minimums for those without one.
5 yearsA condo or cooperative study must be performed or updated at least that often
20-year projectionContributions and expenditures must be projected at least 20 years, with the balance never below zero
Jan 4, 2027Fannie Mae’s 15% reserve minimum takes effect for condo loans
WHAT DELAWARE REQUIRES
Condos need a current study. Without one, set minimums apply.
DUCIOA treats condominiums and planned communities differently. The reserve study, reserve line item and set minimums are written for condominiums and cooperatives.
CONDOMINIUMS AND COOPERATIVES · DUCIOA
A current study and full funding
The study must be new or updated at least every 5 years by independent engineering, architectural or construction contractors, or other qualified persons.
It must project contributions and expenditures for replacements for at least 20 years, and the balance may never fall below zero.
Reserves must sit in a separate account used only for common element repair and replacement.
Without a current study, minimum annual contributions apply: 15% of the annual budget for four or more key components, 10% for three and 5% for two or fewer.
PLANNED COMMUNITIES · DUCIOA § 81-315(A)(2)
No express study or minimums
The reserve line item and the 5%, 10% and 15% minimums in § 81-315(a)(2) are written for condominiums and cooperatives.
The general annual budget and assessment rule applies to all common interest communities.
A study still supports the board’s budget decisions and its fiduciary duty.
The law is tightening, and the county is already there.
Owners can sue to compel compliance
DUCIOA doesn’t impose state fines, but unit owners can sue the executive board to force compliance and the special assessments needed to meet the fully funded standard.
New Castle County inspections belong in the study
Ordinance 23-09 requires periodic structural and façade inspections for certain buildings. Their costs and any required repairs must now be budgeted in the reserve study. County task force recommendations would go further, extending studies to HOAs and projections to 30 years.
Statutory tiers can fall below the lender minimum
Associations funding at the 5% or 10% statutory tiers will fall under Fannie Mae’s 15% minimum unless a qualifying study supports the lower amount.
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 DELAWARE
Get your Delaware 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: Wilmington: Quintin Soloviev, CC BY 4.0. Delaware law summary is not legal advice. Confirm your association’s obligations with Delaware counsel.
