SmartProperty® helps Kentucky condominium associations and HOAs set a replacement reserve they can defend. State law requires co-owners to contribute to a replacement reserve but doesn’t say how much, and a reserve study is how a board answers that.
No Kentucky statute mandates a reserve study. But the law does require a replacement reserve, so the board has to decide the amount and be able to show how it got there.
If a major component fails and a large special assessment follows because the reserve was too small, owners can sue for negligence and breach of fiduciary duty. The board’s defense is proof it made informed decisions on the amount.
Because KRS 381.9203 requires the total reserve amount on the certificate, low or missing reserves show up in front of buyers and lenders, and can make units ineligible for conventional loans.
Fannie Mae’s 15% reserve minimum applies to condo loans dated on or after January 4, 2027, and from August 3, 2026 most condo loans get a full review instead of the streamlined Limited Review.
A site-inspected study to start, then updates as costs and conditions change, so the board always has a current plan.
The Living Reserve Study® updates as projects are completed and costs change, so your plan is ready for the next update or budget.
Model higher contributions, special assessments, loans or lines of credit side by side before you take a recommendation to owners.
Atlas shows the cost data and useful-life assumptions behind every figure, so boards can answer owner questions with confidence.
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: Louisville skyline: The Pug Father, CC BY 2.0. Kentucky law summary is not legal advice. Confirm your association’s obligations with Kentucky counsel.