SmartProperty® helps Utah condominiums and HOAs meet a statutory reserve cycle: a full analysis at least every six years, a review at least every three, and a reserve line item in every budget. Our Living Reserve Study keeps the plan current between those deadlines, so the board can present it before the owner vote.
Every 6 yearsA full reserve analysis for condos and HOAs (§ 57-8-7.5, § 57-8a-211)
Every 3 yearsA review and, if necessary, an update of the previous analysis
Jan 4, 2027Fannie Mae’s 15% reserve minimum takes effect for condo loans
WHAT UTAH REQUIRES
Utah requires the analysis. Owners can push back on the budget.
Two parallel statutes cover condominiums and community associations. The 2026 session left the reserve analysis sections unchanged but changed the rules around them.
UTAH CODE § 57-8-7.5 · § 57-8a-211
A six-year analysis and a three-year review
A full reserve analysis at least every six years, and a review and update if necessary at least every three. There is no grace period.
It must include the component list, remaining useful life, cost estimates, the annual contribution needed and a funding plan.
The board may prepare it or engage a reliable person or organization, and no specific license is required.
The schedule applies unless your governing documents provide otherwise, and it doesn’t apply while the developer controls the association.
BUDGETS · SB 122 · HB 306 · EFFECTIVE MAY 6, 2026
The owner veto and what changed in 2026
Every budget needs a reserve line item the board considers prudent based on the analysis. Owners holding 51% of voting interests can veto it at a special meeting within 45 days.
SB 122 added a right for owners in condos and HOAs to disapprove the whole budget on the same 51% and 45-day terms.
HB 306 requires at least 50% of each reinvestment fee to go into reserves, unless the association is a large master planned development.
Developers must now establish reserves during their control period and disclose material facts about the association’s finances.
After written notice and a cure period of at least 90 days, an owner can sue for an injunction, the greater of $500 or actual damages, and attorney fees. Since 2025, owners can also ask the HOA Ombudsman for an advisory opinion.
A reserve increase can be vetoed
Owners who oppose a higher contribution can veto the reserve line item or disapprove the whole budget. Presenting the study’s findings clearly before the vote is the board’s best preparation.
A board-prepared study may not satisfy lenders
Utah allows the board to write its own analysis, but Fannie Mae accepts a study in place of its percentage test only if an independent third party prepared it. Plan on an independent update at least every three years.
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 UTAH
Get your Utah 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.
