SmartProperty® helps Montana HOAs and common interest communities plan and fund their reserves. State law doesn’t require a study, but it counts allocations to reserves as part of common expenses. A reserve study is how a board makes that budget line defensible.
The Montana Code Annotated, including recent updates such as HB 619, defines common expenses to include allocations to reserves. That shapes what a complete budget looks like.
In Edgewater Townhouse HOA v Holtman, an assessment could be invalidated because the board didn’t follow its own governing documents. Owners can also argue the assessment exists only because the board didn’t plan.
Because common expenses include allocations to reserves, adopting a study’s funding plan into the annual budget keeps the budget aligned with Montana law and with the board’s duty.
An association with no study and weak reserves can land on a lender’s ineligible list. Fannie Mae’s 15% reserve minimum applies to condo loans dated on or after January 4, 2027.
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: Glacier National Park: TerryDOtt, CC BY 2.0. Montana law summary is not legal advice. Confirm your association’s obligations with Montana counsel.