District of Columbia Reserve Study Requirements

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Reserve studies are strongly encouraged for:

• Condominium Associations
• Cooperative Housing Communities
• Residential Developments with Shared Infrastructure

Even without a strict mandate, lenders, insurance providers, and potential buyers increasingly expect associations to have a current reserve study and funding plan in place.

• Supports Fiscal Responsibility
• Helps Avoid Special Assessments
• Improves Buyer Confidence and Financing Options
• Aligns with Fannie Mae & Freddie Mac Lending Requirements

Boards are responsible for protecting the physical and financial health of their communities. A reserve study provides the foundation for sound long-term planning.

1. Conduct a Reserve Study Every 5 Years
   Even though not required by DC law, completing a reserve study every five years is considered industry best practice.
2. Annual Updates or Reviews
   Between full studies, associations should review their reserve status each year and adjust funding as needed.
3. Maintain a Transparent Budget
   Include line items for annual reserve contributions in your operating budget and ensure homeowners understand where their fees are going.
4. Use a Qualified Reserve Provider
   Work with experienced professionals who understand building systems, funding strategy, and DC’s unique property types.

Is a reserve study required by law in DC?
No, not explicitly. However, board members still have a fiduciary duty to maintain common property and plan for future expenses.

Can a lender require a reserve study?
Yes. Lenders often require an up-to-date reserve study for loan approvals or underwriting purposes, especially for condominiums.

What if we’ve never had a reserve study before?
Now is the best time to start. Establishing a baseline study helps avoid crisis-driven funding decisions in the future.

What if our building is older?
Older properties benefit the most from professional evaluations to anticipate large capital expenses and avoid surprise failures.

1.  Inventory your major common area components.
2. Commission a reserve study if one hasn’t been done recently.
3. Compare your current reserves to projected funding needs.
4. Adjust annual contributions to build a stable reserve.
5. Communicate openly with owners to promote long-term planning.

We help associations in the District of Columbia plan ahead with reserve studies that balance accuracy, clarity, and actionable guidance.