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In 2026, 11 states introduced legislation addressing mandatory reserve
studies and, in some cases, some level of mandatory reserve funding.
1. MANDATORY RESERVE
STUDIES & FUNDING
States include:
• California
(legislation passed)
• Colorado
• Delaware
• Florida
• Hawaii
• Illinois
• Michigan
• New Jersey
• Massachusetts
• Maryland
• Rhode Island
A reserve study is an in-depth analysis of a community's property,
financials, and foreseeable costs. These studies are designed to identify
upcoming capital improvements and repairs based on the status of a
community. The study's results determine how much money an association
must collect to cover these expenses and keep funding on track.
The trend toward mandatory reserve studies and funding laws is
complementary to Fannie Mae and Freddie Mac's new reserve funding
requirement. In 2027, Fannie Mae and Freddie Mac will require reserve
contributions of 15% of assessment income, up from 10%, to qualify
for lending.
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