SmartProperty® helps Tennessee condominium associations keep up with a mandatory reserve study that must be updated at least every five years under TCA § 66-27-403(g). The requirement covers condominiums only, not traditional single-family HOAs.
Every 5 yearsA condo reserve study must be updated at least this often (TCA § 66-27-403(g))
$10,000Common-element replacement cost that triggers the law, which covers virtually all condos
Jan 4, 2027Fannie Mae’s 15% reserve minimum takes effect for condo loans
WHAT TENNESSEE REQUIRES
Tennessee requires the study. It doesn’t require the funding.
The Tennessee Condominium Act of 2008 mandates periodic studies for condominium associations. HOAs and planned communities fall under separate, less comprehensive statutes.
TCA § 66-27-403(g) · CONDOMINIUMS
Who must have a study, and when
It applies to condominium associations whose common elements have an aggregate replacement cost over $10,000.
An association with no study completed on or after January 1, 2020 had to complete a full study by January 1, 2025.
After that, the study must be updated at least every five years, and the board must review it annually and adjust the budget.
Exempt: single-family HOAs and planned communities, associations still controlled by the declarant, and condominiums with a single owner or owned by a married couple as tenants by the entirety.
STANDARDS · WHO MAY PREPARE IT · DISCLOSURE
A third-party specialist, shared with owners
The study must follow the latest CAI Reserve Study Standards or similar national standards, with an onsite physical analysis and a financial analysis.
It must be prepared by a third party: a CAI-credentialed Reserve Specialist, a licensed professional engineer or a licensed architect.
The statute sets no minimum funding level, but your declaration or bylaws may.
The board must promptly make a copy available to owners by email or on the community website.
The state imposes no administrative fines for non-compliance. The risk is civil litigation, since not following a clear mandate can breach a board’s duty of ordinary and reasonable care.
Lenders set the funding floor
Because the statute sets no funding level, Fannie Mae and Freddie Mac become the practical minimum. Ignoring a study’s funding recommendations can hurt the marketability and value of units.
HOAs could be next
Traditional HOAs are largely unregulated in Tennessee today, but a comprehensive Homeowners Association Act is frequently introduced. If one passes, it could extend reserve study or funding rules to planned communities.
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 TENNESSEE
Get your Tennessee 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.
