What Is an HOA Reserve Study?
Think about the roof on your own house. You know it won't last forever, so it's smart to set money aside now rather than face a big surprise later. A reserve study does the same thing for a homeowner association.
How a reserve study works
A qualified professional reviews the community's shared components, such as roofs, paving, fencing and other common elements. For each one, the study estimates:
- Remaining useful life: how many years until it needs major repair or replacement
- Expected replacement cost: what that work is likely to cost
The study then helps the board plan how much to set aside in reserves each year so the money is there when it's needed.
Why reserve studies are updated
Conditions and costs change. A harsh winter, a hailstorm or rising construction prices can all shift the numbers. That's why reserve studies are updated periodically, so the board's savings plan stays realistic.
Why it matters to owners
Planning ahead helps reduce the chance of unexpected special assessments, the one-time charges owners pay beyond regular dues to cover a specific expense. A well-funded reserve also helps keep the community well maintained, which supports property values for everyone.
What's new in Colorado
Colorado's HB26-1099, effective August 12, 2026, requires developers of new communities to pay for an independent 30-year reserve study before turning control over to the owners. This applies to new communities only, not to every HOA. For new boards taking over from a developer, that study is a valuable starting point.
Source: https://leg.colorado.gov/bills/HB26-1099 (opens in a new tab) . General information only, not legal advice.
How Accord helps
We coordinate reserve studies with qualified professionals, track reserve balances and planned projects, and help boards connect the study to the annual budget. Our professional accounting means the numbers your board relies on are accurate and clear.
Questions about your community's reserves? Owners can contact their community manager. Board members exploring management can Request a Proposal .
Related: Where Do HOA Dues Go? | Financial and accounting services
