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2. WHY DO HOAS
NEED A RESERVE
FUND?
A reserve fund is your community's way to plan and
prepare for the inevitable and unexpected. Sufficient
reserves allow the association to pay for repairs and
updates you know will happen, like replacing a shared
roof or resurfacing common roads, and unexpected
expenses, like damage from earthquakes, hurricanes,
and other natural disasters.
Beyond paying for these repairs, reserve funds also
help your community attract new buyers and meet
requirements put into place by some lenders. It helps
show homeowners your board is responsible and well
prepared.
Some states in the U.S. require associations to have a
reserve fund in place. These states include:
• California
• Hawaii
• Oregon
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