HOA Reserve Requirements by State: Reserve Study Laws

Only some states require HOA or condo reserve studies by law. Most have no reserve-study statute, so the association’s governing documents and its lenders’ rules decide what happens.

Where state laws do exist, they differ. States like California, Washington, Nevada, and Virginia require periodic studies on strict multi-year schedules. Florida mandates specialized structural studies for condominium buildings of three habitable stories or more, while Colorado requires only a written reserve-study policy.

States With Reserve Study Laws

California, Florida (for condo buildings three habitable stories or higher), Washington, Virginia, Nevada and Oregon set reserve-study rules by statute. According to CAI’s Summary of State Reserve Fund Laws, so do Hawaii, Delaware, Maryland, Utah, Tennessee and New Jersey. Colorado requires only a written reserve-study policy, and most other states have no reserve-study statute.

A reserve study is a long-range budget planning tool that lists an association’s common physical components, estimates their remaining useful life, and calculates the cash contributions needed to repair or replace them over 30 years. When evaluating the condition of their reserves, boards measure HOA reserve percent funded, which compares actual cash on hand against the estimated cash reserves needed.

State	What the law requires	How often	Who must prepare it
California	Visual inspection of accessible major components with replacement value of at least 50 percent of gross budget (excluding reserves); funding plan; annual disclosures	Visual site inspection at least every 3 years; study reviewed annually	No statutory license or credential specified
Florida (Condominiums)	Structural Integrity Reserve Study (SIRS) for residential condo buildings 3 habitable stories or higher	At least every 10 years	Licensed engineer, licensed architect, CAI Reserve Specialist, or APRA Professional Reserve Analyst
Florida (HOAs)	Chapter 720 HOAs have optional reserves unless approved by majority vote; no SIRS mandate	Optional; annual financial report requires disclosure if not fully funded	Not specified
Washington	Reserve study with 30-year cash-flow projection, percent funded, full-funding and baseline plans	Annual update; study with site visit at least every 3 years	Reserve study professional (exemptions apply, such as study cost exceeding 10 percent of budget)
Virginia	Reserve study with capital components; disclosures included in annual budget	At least every 5 years; reviewed by board annually	No statutory preparer credential specified
Oregon	Reserve study for planned communities covering items with useful life over 1 and under 30 years	Conducted or updated annually	Board conducts or updates
Nevada	Reserve study and reserve funding plan	At least every 5 years; reviewed annually	Preparer permit rules apply (check the state’s rules)
Colorado	Written reserve-study policy	Policy required; internally conducted study is sufficient	No outside preparer required; bill for 5-year studies was vetoed
Hawaii	Condominium statute requires reserve studies and 30-year cash-flow plans (per CAI’s summary)	Periodic review (per CAI’s summary)	Independent preparer (per CAI’s summary)
Delaware	Condominiums must base reserve accounts on a current reserve study (per CAI’s summary)	Kept current (per CAI’s summary)	Not specified in statute summary
Maryland	Condominiums must complete an updated reserve study (per CAI’s summary)	At least every 5 years (per CAI’s summary)	Not specified in statute summary
Utah	Condominiums must complete a reserve analysis (per CAI’s summary)	Analysis at least every 6 years; review at least every 3 years (per CAI’s summary)	Not specified in statute summary
Tennessee	Reserve study required for associations (per CAI’s summary)	At least every 5 years (per CAI’s summary)	Not specified in statute summary
New Jersey	Enacted 2024 legislation requiring associations to obtain a reserve study (per CAI’s summary)	At least every 5 years (per CAI’s summary)	Not specified in statute summary

States Without a Reserve Study Law

In a state with no reserve-study statute, the association’s governing documents and lender rules still apply.

Lender rules apply whatever state law says. For condo projects, Fannie Mae Selling Guide B4-2.2-01 sets out the Full Review process. Under this process, the lender must confirm that the association’s annual budget provides for the funding of replacement reserves for capital expenditures and deferred maintenance that is at least 10 percent of the budget.

Lenders calculate this reserve allocation by dividing the annual budgeted reserve contribution by the annual budgeted assessment income. Lenders may leave incidental income, utility pass-throughs such as cable or internet, special assessments, and money already allocated to reserves out of assessment income. Learn more about loan review rules in our guide to Fannie Mae condo reserve requirements.

California and Florida Reserve Laws

California Reserve Study Mandates

California governs common interest developments through the Davis-Stirling Common Interest Development Act. Under Civil Code section 5550(a), an association board must cause a reasonably competent and diligent visual inspection of accessible areas of major common components at least once every three years. This requirement applies whenever the current replacement value of those major components equals or exceeds half of the association’s gross annual budget, excluding the reserve account itself. The board must review this reserve study, or commission an updated review, every year.

California Civil Code section 5550(b) requires the study to catalog all major components with a remaining useful life of under 30 years. It must document each component’s estimated remaining useful life, current replacement costs, and the annual reserve contribution needed after crediting current balances. Section 5550(c) specifies that shared gas, water, and electrical utility lines count as major components to the extent the association is responsible for their maintenance.

Under California Civil Code section 5560, the board adopts a reserve funding plan at an open board meeting. The plan includes a schedule of the date and amount of any change in regular or special assessments needed to fund it, though any actual assessment increase requires separate formal board action. Two more sections set what the board must report:

1. The Reserve Summary (Section 5565): Discloses each component’s estimated replacement cost and useful life, actual cash reserves on hand, the statutory percent funded figure, and the estimated reserve deficiency per unit.
2. Assessment and Reserve Funding Disclosure Summary (Section 5570): Distributed with the annual budget report, stating whether the board anticipates reserve balances will be sufficient over the next 30 years and charting projected percent funded figures for each of the next five budget years.

On September 29, 2026, California enacted Assembly Bill 2050 (Chapter 796, Statutes of 2026). Starting January 1, 2032, a reserve study must show a minimum reserve contribution level that keeps the projected reserve cash balance from falling below zero over a 30-year period. A newly created Civil Code section 5552 will require associations to fund reserves at or above that calculated minimum level. Boards tracking these developments can review our detailed guides to California HOA reserve requirements and broader California HOA laws.

Florida Condominium and HOA Reserve Statutes

Florida maintains two separate legal frameworks for community associations: Chapter 718 for condominiums and Chapter 720 for planned community homeowners associations. These statutes were amended through major legislative reforms in House Bill 1021 (2024, Chapter 2024-244) and House Bill 913 (2025, Chapter 2025-175).

Under Florida Statutes section 718.112(2)(g), residential condominium buildings that stand three habitable stories or higher must obtain a Structural Integrity Reserve Study (SIRS) at least once every 10 years. The SIRS must cover these items:

• Roof systems
• Load-bearing walls and primary structural members
• Fireproofing and fire protection systems
• Plumbing lines
• Electrical systems
• Waterproofing and exterior painting
• Windows and exterior doors
• Any other component with a replacement cost exceeding $25,000 (inflation-adjusted) whose failure would harm the items above

The SIRS must be performed or verified by a licensed engineer, a licensed architect, a reserve specialist certified by the Community Associations Institute (CAI), or a professional reserve analyst certified by the Association of Professional Reserve Analysts (APRA). Associations in existence on or before July 1, 2022 were required to complete their initial SIRS by December 31, 2025. If a building’s milestone structural inspection was due by December 31, 2026, the association could complete the SIRS alongside that milestone inspection, but no later than December 31, 2026. The SIRS funding plan must, at a minimum, keep the reserve cash balance above zero (a baseline plan).

Florida restricts how condominium boards handle these structural accounts. For annual budgets adopted on or after December 31, 2024, a unit-owner-controlled condominium association subject to the SIRS requirement cannot vote to waive or reduce reserve funding for SIRS items. Limited statutory exceptions exist, including a temporary pause or funding reduction for up to two annual budgets adopted on or before December 31, 2028 following an official milestone inspection.

Reserves for non-SIRS assets, such as roads, may still be reduced or waived if approved by a majority of the total voting interests. Additionally, SIRS reserves cannot be commingled with non-SIRS assets; they may only be pooled with other SIRS components.

In contrast, single-family HOAs governed by Chapter 720 do not fall under the SIRS mandate. Under Florida Statutes section 720.303(6), funding reserves is optional. An HOA budget may include reserve accounts, but statutory reserves become mandatory only if approved by a majority of the association’s total voting interests. Once established, members can vote annually to waive or reduce funding. If an HOA chooses not to fund reserves fully, its annual financial report must state this clearly in a conspicuous statutory disclosure.

For deeper analysis of Florida rules, read our guides on Florida reserve requirements, Florida condo laws 2026, Florida HOA laws, and the structural integrity reserve study.

Other State Statutes and Frameworks

Washington

Washington regulates common interest communities under RCW 64.90.545 and RCW 64.90.550. Associations must update their reserve study every year. At least once every three years, the association must commission an updated study that includes a site visit by a reserve study professional.

Washington requires reserve studies to show a 30-year cash-flow projection, calculate percent funded, and model both full-funding and baseline funding plans. The statute provides exemptions, such as when the study’s cost exceeds 10 percent of the budget.

Virginia

Virginia regulates property owners associations under the Property Owners’ Association Act, Code of Virginia section 55.1-1965. Associations must conduct a reserve study at least once every five years to identify capital components and determine required contributions. The board must review the reserve study annually, with reserve information disclosed in the budget.

Nevada and Oregon

Under Nevada Revised Statutes section 116.31152, common-interest associations must commission a formal reserve study at least once every five years and review its funding projections annually.

Oregon planned communities operate under Oregon Revised Statutes section 94.595. The board must conduct or update an annual reserve study covering all shared property components that have a useful life of more than one year and less than 30 years.

Colorado

Colorado Revised Statutes require associations to adopt a written governance policy on reserve studies. Under current Colorado HOA laws, the statute does not require an association to hire an outside professional specialist, and an internally conducted study prepared by the board satisfies the law. There is no statutory mandate forcing the board to fund reserves to a specific level; a prior 2022 legislative bill that would have required five-year reserve studies was vetoed.

What a Board Should Do Either Way

Four steps apply in every state:

1. Examine the Recorded Governing Documents: Read your declaration of covenants, conditions and restrictions (CC&Rs) and bylaws to identify mandatory reserve clauses. Even if state law is silent, your declaration may require the board to fund capital accounts, carry out regular engineering audits, or obtain owner approval before reallocating funds. Learn how reserves differ from regular operations in our explainer on what HOA reserve funds are used for.
2. Catalog Common Property Components: Maintain an active inventory of every physical asset the community is obligated to repair, paint, pave, or replace. Record each component’s initial installation date, expected useful life, and current estimated replacement cost. Learn how specialists assess component lifecycles in our guide to reserve study components and their useful lives.
3. Model Reserve Cash Flow Over 30 Years: Evaluate whether current annual contributions will cover upcoming capital replacements without forcing a special assessment. Associations facing cash shortfalls can consult our guide on underfunded HOA reserves to structure corrective contribution plans.
4. Integrate Reserve Allocations into the Operating Budget: If your community is a condo, check the reserve line against Fannie Mae’s Full Review test of at least 10 percent of budgeted assessment income (see Fannie Mae condo reserve requirements for the 2027 change). Boards can review step-by-step practices in how to create an HOA budget and follow proper reporting procedures under HOA reserve fund accounting.

If your board wants to run these numbers itself, The HOA Guide’s Reserve Study Builder ($99) lets you list your components and shows your percent funded, fully funded balance and a 30-year plan, with PDF and Excel exports. It is a planning tool, not a professional reserve study. It does not meet state laws that require a professional preparer, Florida’s SIRS requirement, or Fannie Mae’s reserve-study criteria.

Boards seeking a free framework can download our HOA reserve study template or calculate current account health using the HOA reserve fund calculator. If your community requires a formal study to satisfy state statutes or lender reviews, compare providers in our guide to the best HOA reserve study companies or follow our walkthrough on how to do a reserve study. For boards managing accumulated balances, see statutory investment restrictions in can an HOA invest reserve funds.

Bottom Line

State reserve-study laws run from a structural study every 10 years for Florida condo buildings three habitable stories or higher, to a visual inspection every three years in California, to a written policy only in Colorado.

If your state has a reserve-study statute, follow its schedule and preparer rule from the table above. If it does not, your governing documents still apply, and condo lenders using Fannie Mae’s Full Review still test the budget’s reserve line.

To establish an accurate long-term funding plan for your association, evaluate your current cash balance against our funding benchmarks in how much should an HOA have in reserves.

This page is general information and is not legal advice. For questions about your governing documents or your state’s laws, speak with a licensed attorney in your state.