50-state HOA reserve fund requirements: quick reference

By Angel Campa, Founder Published April 2, 2026 Updated April 16, 2026 Reviewed April 16, 2026

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 Lender Letter LL-2026-03 creates a de facto national floor: the Limited Review process for condo projects is retired August 3, 2026, and the 15% reserve allocation threshold applies to Full Review loan applications on or after January 4, 2027. This guide covers every state so your board knows exactly what applies.

BoardStack · Free template 50-state HOA reserve fund requirements: quick reference

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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% for Full Review loan applications on or after January 4, 2027 under Lender Letter LL-2026-03) if units are financed with conventional mortgages. Note also that the Limited Review process for condo projects is retired as of August 3, 2026 — all condo loan applications must use Full Review from that date.

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. §718.111(14) requires separate accounting of condo reserves and operating funds (joint investment permitted only with separate accounting); §720.303 imposes the same separate-accounting duty on HOAs.
Penalties: DBPR Division of Condominiums can fine condo and co-op boards up to $5,000 per violation under §718.501(1)(d)(6) and Florida Admin Code Chapter 61B-21. HOAs are not under DBPR jurisdiction; HOA enforcement is via member civil action.
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: Md. Real Prop. §11B-112.2 (annual budget reserves) and §11B-112.3 (reserve study) for HOAs; §11-109.4 for condominium reserve studies
Study frequency: Reserve study required under HB 107 (2022); funding plan and budget alignment required under HB 292 (2025)
Funding requirement: Mandatory funding under HB 292 (2025, Chapter 519, effective October 1, 2025). Associations must adopt a funding plan in consultation with the reserve study author and deposit reserve contributions per the most recent reserve study’s recommended amount by the end of each fiscal year.
Penalties: Enforcement runs through the Maryland Attorney General’s Consumer Protection Division under the Maryland Condominium Act and Homeowners Association Act. No specific reserve-fund per-violation statutory penalty is set in §11B-112.2 or §11B-112.3.
Post-Surfside changes: HB 107 (2022, Chapter 664) — reserve study mandate; HB 292 (2025, Chapter 519) — mandatory funding plan and budget alignment.

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