Autumn foliage reflected in a Vermont pond

RESERVE STUDIES IN VERMONT

Vermont reserve planning

SmartProperty® helps Vermont condominiums and HOAs plan and fund their reserves. Vermont doesn’t require a study, but its resale certificate puts your reserves and your capital plan in front of every buyer and lender.

Get a Demo Request a Proposal

Jan 4, 2027Fannie Mae’s 15% reserve minimum takes effect for condo loans

Disclosed at resaleReserves and three fiscal years of planned capital spending (27A V.S.A. § 4-109)

No mandateVermont law doesn’t require established associations to study or fund reserves

WHAT VERMONT REQUIRES

Reserves are optional.
The disclosure isn’t.

The Vermont Common Interest Ownership Act authorizes reserves and requires disclosure of them. It doesn’t require an established association to maintain any.

VCIOA · 27A V.S.A. § 3-102(a)(2) · § 4-103(a)(5)

The power to reserve, and a developer disclosure

The association may adopt and amend budgets for revenues, expenditures and reserves. That is an authorization (“may”), not a command (“shall”).
A new community’s Public Offering Statement must include the amount budgeted for reserves, or state that none is included.
After that disclosure, the statute doesn’t mandate ongoing studies or funding levels.

27A V.S.A. § 4-109 · RESALE CERTIFICATE

What every buyer is told

The certificate must disclose capital expenditures the association anticipates for the current and next two fiscal years.
It must state the amount of any reserves and any portions designated for specified projects.
A buyer isn’t liable for unpaid assessments greater than the amount stated in the certificate (§ 4-109(c)).

Read the full Vermont reserve law guide

WHY IT MATTERS IN VERMONT

Your reserve plan
is already on the certificate.

The certificate shows your three-year plan

The resale certificate lists anticipated capital expenditures and reserve amounts, so buyers and lenders see whether a plan exists. A study gives those numbers something to rest on.

Errors on the certificate can cost the association

A buyer isn’t liable for an assessment above the amount in the certificate. If an approved special assessment is left off, the association may be unable to collect it from the buyer.

A boiler or roof failure lands on the board

If a roof, siding or boiler fails and a large special assessment follows, owners can sue for negligence and breach of fiduciary duty. The board’s defense is ordinary prudence, and a study is the record of it.

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 VERMONT

Get your Vermont 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.