SmartProperty® helps North Carolina HOAs and condominiums plan and fund their reserves. State law lets boards budget for reserves but doesn’t require a study or a minimum balance, so the board’s duty of care is what sets the standard.
Both the Condominium Act and the Planned Community Act authorize reserve budgets. After the developer’s initial disclosure, the statutes are silent on ongoing requirements.
Our guide notes that refusing to pay can lead to liens and foreclosure, so the usual path is to pay under protest and sue. A board with a study can show the assessment was foreseeable and planned for.
The state’s residential property disclosure form doesn’t require the reserve balance or a study, and the condominium resale statement (§ 47C-4-109) covers only the monthly assessment and other fees. Buyers are told to ask for the budget and any study, so your reserve picture matters.
An association with 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, or the budget must fund a current study’s highest recommended contribution.
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: Charlotte skyline: brandon walker, CC0. North Carolina law summary is not legal advice. Confirm your association’s obligations with North Carolina counsel.