Why Does My HOA Need a Reserve Study?

By: ​Dianne Donnelly – CMCA, AMS, Park Pointe Management Services

Why does our community need a Reserve Study? If something major needs repaired or replaced, we’ll figure it out at that time, or hope we’ve been setting enough funds aside in our Reserve Account.

​Reserve Study requirements are different from state to state. Some states require a reserve study be completed, how often it must be updated, and what percentage of funds, based on the study, must be in the HOA’s Reserve account. Idaho does not currently require a reserve study to be completed for a homeowner’s association, but don’t be surprised if that changes in the near future. Just because it’s not required does not take away from the importance of having one completed, and the enormous benefit to your community.

​As an elected Board Member, one of your most important responsibilities is Fiduciary Duty. In a Homeowners Association, that means a duty to make decisions and act in the best interest of the association, and its subsequent members. 

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