Twelve states require community associations, such as homeowners associations or HOAs, to conduct periodic reserve studies. A reserve study is a financial planning tool for estimating an association’s ability to fund current and future planned maintenance costs for large projects, such as roofs, pools, and asphalt roads. An underfunded reserve may lead to special assessments. Yet, due to restrictions on how reserve accounts can be used, an over funded account denies funds that may be better...
