Virginia Reserve Study Requirements

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The requirements apply to:

• Condominium Associations
• Homeowners Associations (HOAs)
• Property Owners' Associations (POAs)

In each case, the board of directors or executive board is responsible for meeting the obligations under the Virginia Property Owners' Association Act and Condominium Act.

• Conduct a Reserve Study Every 5 Years
  All associations must complete a comprehensive reserve study at least once every five years. This includes both a physical inspection of common elements and a financial analysis of projected repair or replacement costs.
• Annual Review of the Study
  Each year, the board is required to review the most recent reserve study and adjust the annual budget if necessary. The goal is to keep funding in line with the projected needs identified in the study.
• Transparent Budgeting
  The annual budget must clearly reflect:
  • Estimated remaining useful life and cost of major components
  • Current balance of the reserve fund
  • Projected annual contributions to reserves
  • Any funding plan or methodology used by the association
• Corrective Action
  If reserves fall short or are not being funded appropriately, the board is expected to take reasonable steps to close the gap. This may include adjusting assessments, reallocating funds, or pursuing financing if appropriate.

Staying compliant with Virginia's reserve laws helps:

• Reduce the risk of unexpected special assessments
• Support stable property values
• Build trust with homeowners
• Avoid legal or financial penalties for non-compliance

Well-funded reserves also allow associations to maintain their buildings and infrastructure proactively rather than reactively.

How often does my association need a reserve study?
Every five years, at a minimum, with annual reviews in between to stay current.

Can we wait to fund our reserves later?
Delaying reserve funding can lead to large special assessments or deferred maintenance issues that cost more over time.

Are we required to follow the recommendations in the reserve study?
While the board has discretion, the law expects funding decisions to reflect the study’s recommendations or be reasonably justified.

What if our community is newly built?
New communities should have a baseline reserve study conducted soon after construction to establish future budgeting needs.

1. Gather an accurate inventory of capital components.
2. Schedule a reserve study if one hasn’t been completed in the past five years.
3. Review your existing study and compare it to your current funding levels.
4. Adjust your budget and funding plan accordingly.
5. Communicate clearly with homeowners about the importance of reserve planning.

We specialize in helping Virginia associations stay compliant with state requirements through detailed reserve studies, annual updates, and planning support.