50-state HOA reserve fund requirements: quick reference guide
TLDR
Reserve fund requirements vary dramatically across states. Twelve states mandate reserve studies. Only three impose explicit monetary penalties for non-compliance. Many states have no reserve requirement at all, but Fannie Mae's 15% allocation threshold (effective August 2026) creates a de facto national floor. This guide covers every state so your board knows exactly what applies.
How to Use This Guide
This reference covers all 50 states and the District of Columbia. For each jurisdiction, we list: whether a reserve study is mandated, the relevant statute, study frequency requirements, funding rules, penalties for non-compliance, and any post-Surfside legislative changes.
States fall into four categories:
- Mandate states require reserve studies by statute
- Disclosure states require reserve fund information in financial reports but do not mandate a formal study
- Permissive states allow or encourage reserve studies but do not require them
- Silent states have no specific reserve fund provisions in their HOA statutes
Regardless of state law, all associations are subject to Fannie Mae’s reserve allocation requirement (currently 10%, rising to 15% effective August 3, 2026) if units are financed with conventional mortgages.
Mandate States (Reserve Study Required)
California
- Statute: Civil Code 5550-5560
- Study frequency: Every 3 years (visual inspection every year, full study every 3 years)
- Funding requirement: Must include a 30-year funding plan. Boards must disclose percent-funded status annually.
- Penalties: $100-500 per day for non-compliance
- Post-Surfside changes: SB 900 (2024), AB 2114 (2024), SB 410 (2025) strengthened requirements. AB 2050 pending.
Colorado
- Statute: Colorado Common Interest Ownership Act 38-33.3-209.5
- Study frequency: Recommended every 5 years; required for communities with annual assessments above a threshold
- Funding requirement: Must disclose reserve balance and percent-funded status
- Penalties: Fiduciary duty exposure
- Post-Surfside changes: No major post-Surfside legislation enacted
Delaware
- Statute: Delaware Uniform Common Interest Ownership Act 81-318
- Study frequency: At least every 5 years
- Funding requirement: Reserve study must include a funding plan
- Penalties: Fiduciary duty exposure
- Post-Surfside changes: No major post-Surfside legislation enacted
Florida
- Statute: Chapter 718 (condos), Chapter 720 (HOAs)
- Study frequency: SIRS every 10 years for condos/co-ops 3+ stories; milestone inspections at 30 years (25 near coast)
- Funding requirement: Reserve waiver banned for structural components covered by SIRS. Deferred maintenance threshold: $25,000.
- Penalties: $5,000 per violation
- Post-Surfside changes: SB 4-D (2022), HB 913 (2025). Most comprehensive post-Surfside reforms in the country.
Hawaii
- Statute: HRS 514B-148
- Study frequency: As required by statute; 30-year horizon under Act 296
- Funding requirement: Minimum 50% funded requirement under Act 296 (2025)
- Penalties: Fiduciary duty exposure
- Post-Surfside changes: Act 62 (2022), Act 296 (2025). Significant strengthening of requirements.
Maryland
- Statute: Maryland Homeowners Association Act 11B-112
- Study frequency: As required by statute
- Funding requirement: Mandatory baseline funding under HB 292 (2025)
- Penalties: $10,000 fines
- Post-Surfside changes: HB 107 (2022), HB 292 (2025). Highest explicit monetary penalty of any state.
Nevada
- Statute: NRS 116.31152
- Study frequency: At least every 5 years
- Funding requirement: Must include a 30-year plan with annual contribution schedule
- Penalties: Fiduciary duty exposure
- Post-Surfside changes: SB 56 pending to strengthen existing requirements
Oregon
- Statute: ORS 100.175
- Study frequency: At least every 3-5 years (varies by community type)
- Funding requirement: Must include a funding plan
- Penalties: Fiduciary duty exposure
- Post-Surfside changes: No major post-Surfside legislation enacted
Tennessee
- Statute: Tennessee Community Association Act
- Study frequency: As required by governing documents or statute
- Funding requirement: Study required but funding levels NOT mandated
- Penalties: Fiduciary duty exposure
- Post-Surfside changes: SB 863 (2023). Weakest post-Surfside reform — study required, funding not.
Utah
- Statute: Utah Community Association Act 57-8a
- Study frequency: At least every 6 years
- Funding requirement: Must disclose reserve balance
- Penalties: Fiduciary duty exposure
- Post-Surfside changes: No major post-Surfside legislation enacted
Virginia
- Statute: Virginia Property Owners’ Association Act 55.1-1826
- Study frequency: At least every 5 years
- Funding requirement: Must include component analysis and funding plan
- Penalties: Fiduciary duty exposure
- Post-Surfside changes: HB 1209 (2024) formalized definitions and strengthened board authority
Washington
- Statute: RCW 64.34.382 (condos), 64.90 (common interest)
- Study frequency: At least every 3 years
- Funding requirement: Must include a 30-year funding plan
- Penalties: Fiduciary duty exposure
- Post-Surfside changes: No major post-Surfside legislation enacted
50-state HOA reserve fund requirements: quick reference guide
State-by-state breakdown of HOA reserve fund mandates, statutes, study frequency requirements, funding rules, penalties, and post-Surfside legislative changes for all 50 states.
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