Georgia HOA Reserve Study Requirements & Reserve Fund Laws (2026 Guide)

Georgia’s legal framework for HOA and condo reserves

Georgia community associations operate under a mix of statutes and governing documents. Condominiums are governed primarily by the Georgia Condominium Act, codified at O.C.G.A. § 44-3-70 et seq. Homeowner associations can be organized under the Georgia Property Owners’ Association Act (POAA), O.C.G.A. § 44-3-220 et seq., or exist as “common law” HOAs that rely mainly on their recorded covenants and general Georgia contract and corporate law. (readingroom.law.gsu.edu)

None of these statutes currently impose a statewide requirement to perform reserve studies or to maintain reserves at a specific funding level. Instead, Georgia law focuses on how associations are formed, how assessments are adopted and collected, and what disclosures must be made to purchasers - particularly in condominiums - including budgets that identify reserve line items. (Justia Law)

Reserve studies in Georgia: what the law actually says

From a pure statutory perspective, Georgia falls into the category of “no mandate” states. Reputable national summaries of reserve study laws consistently state that Georgia does not require associations to perform reserve studies and does not require boards to allocate a specific percentage of dues into reserves.

However, that does not mean reserves are irrelevant in Georgia law:

• The Georgia Condominium Act requires sellers in residential condominium sales to provide buyers with an estimated or actual budget for the association, and that budget must itemize reserves, including reserves for deferred maintenance, reserves for depreciation, and other reserves.
• The same Act and the POAA make boards responsible for properly levying assessments and managing association finances under a fiduciary duty of care. Failing to plan for predictable long-term repairs can be argued as inconsistent with that duty, even if the statute never uses the words “reserve study.” (Nowack Howard)

In practical terms, Georgia boards are not told to perform a reserve study on a given schedule, but they are expected to manage money prudently, disclose reserve assumptions in condo resale documents, and avoid reckless underfunding that results in repeated emergency assessments.

What this means for Georgia condominium associations

Condominium associations are most directly touched by the Georgia Condominium Act’s reserve-related provisions. 

While the statute does not compel a specific reserve balance, it forces transparency by requiring that resale disclosure budgets clearly identify multiple reserve line items, including reserves for deferred maintenance and depreciation. 

That has several consequences for boards:

• Buyers will see whether your budget realistically funds future capital repairs or simply lists token reserve numbers.
• Lenders and insurers can quickly spot underfunding, which can affect loan approvals and insurance underwriting.
• Poorly funded budgets can depress sale prices and create pressure for steep special assessments shortly after purchase.

Because of those dynamics, many Georgia condominium boards treat periodic reserve studies as a de facto requirement, even though they are not written into the statute. 

A professional reserve study makes it much easier to defend your budget assumptions, adjust contributions as components age, and demonstrate that the board acted in good faith when setting dues.

What this means for POAA and common-law HOAs

For HOAs organized under the POAA, the statute grants strong powers to levy and collect assessments and to enforce covenants, but it again stops short of dictating reserve study schedules or minimum reserve balances. 

Common-law HOAs that never opted into the POAA depend heavily on what their declaration says about assessments and reserves, with Georgia case law filling gaps. 

In both structures, the board’s duty of care and loyalty to the association is the key standard. A Georgia HOA board that habitually “zero-budgets” reserves and relies on last-minute special assessments for foreseeable projects (such as roof replacement, paving, or major mechanical replacements) increases legal and reputational risk, even if there is no explicit reserve law. 

Owners, and their attorneys, can argue that such behavior is inconsistent with prudent, good-faith management.

Why reserve studies still matter in a “no-mandate” state

If the law does not explicitly require a reserve study, why bother? In Georgia, there are several hard-nosed reasons:

• Georgia’s humid subtropical climate - with hot summers, frequent thunderstorms, and heavy rainfall - accelerates deterioration of roofs, exterior finishes, HVAC systems, and drainage infrastructure.
• National reserve study data show that many associations discover they are significantly underfunded when a formal study is performed.
• Lenders and buyers increasingly expect HOAs and condos to demonstrate long-term capital planning, especially for older buildings and amenities.

A well-prepared reserve study gives your board a defensible roadmap for 20-30 years of capital projects, with estimated costs and recommended annual reserve contributions. For Georgia communities, that can be the difference between controlled dues increases and sudden, politically toxic special assessments.

Recommended reserve study frequency for Georgia associations

Because there is no Georgia-specific mandate, boards should rely on industry norms:

• Full reserve study (with site inspection): Every 3-5 years, or after major construction projects that materially change your component inventory or remaining useful lives.
• Interim updates (no site visit or limited inspection): Annually, to adjust for inflation, completed projects, and updated cost estimates.
• Trigger events: Commission at least a focused update when your association adds significant new amenities, experiences major storm damage, or faces a noticeable shift in construction costs.

This cadence keeps your long-term funding plan aligned with reality without overspending on studies.

Funding strategies for Georgia HOAs and condos

Georgia law does not prescribe a particular funding method, so boards commonly adopt one of the standard reserve funding strategies:

• Full-funding: Aim for reserves that match 100 percent of the amount needed to replace all components over the study’s time horizon. This is the most conservative and lender-friendly approach.
• Threshold funding: Target a defined minimum balance (for example, never less than 30-40 percent funded) and adjust contributions to stay above that floor.
• Baseline funding: Set contributions so the reserve balance never hits zero over the projection period, accepting periods of lower funding so long as you avoid negative balances.

For many Georgia associations, a blend makes sense: using threshold or baseline funding in the early years, then pushing closer to full-funding as the community ages and more components approach the end of their useful lives. 

Regardless of method, the key is to document your chosen strategy in board minutes and explain it to owners when budgets are adopted.

Practical steps for Georgia boards

If you serve on a Georgia HOA or condo board, you can use this checklist to bring your reserve planning in line with best practices, even without a statutory mandate:

1. Confirm your legal framework - Determine whether your community is a condominium under the Georgia Condominium Act, an HOA submitted to the POAA, or a common-law HOA. This affects your governance powers, lien rights, and how disclosures are handled.
   
   
2. Review your governing documents - Read your declaration, bylaws, and any budgeting or reserve policies. Some Georgia communities have their own internal reserve study or minimum reserve balance requirements written into the governing documents, especially newer developments or lender-influenced projects.
   
   
3. Commission an initial reserve study - Engage an experienced reserve study professional who understands Georgia’s climate, construction practices, and local cost environment. For condos, make sure the study’s funding plan aligns with how your budget will present reserves in the resale disclosure package so you are not inadvertently documenting underfunding.
   
   
4. Adopt a written reserve funding policy - Based on the study, choose a funding method (full, threshold, or baseline) and adopt it formally in board minutes or a finance policy. Aim, over time, to move toward healthier funding levels (often in the 70-100 percent funded range) to keep projects on schedule and avoid crisis assessments.
   
   
5. Communicate clearly with owners - Present your reserve study findings and funding plan at an open meeting. Use plain language to explain why reserves matter in Georgia’s climate, what projects are coming, and how your plan keeps dues predictable. Transparency lowers resistance to realistic contribution levels.
   
   
6. Update consistently - Schedule your next full study or update before you adjourn the meeting where the current study is adopted. Treat reserve planning as a rolling process, not a one-off exercise.

How PropFusion helps Georgia communities manage reserves

PropFusion’s platform is designed to make this whole process easier for Georgia boards, association managers, and reserve study professionals:

• Boards can track reserve balances, upcoming projects, and funding scenarios in a single dashboard rather than in scattered spreadsheets.
• Association managers can monitor reserve health across an entire portfolio of Georgia communities and spot underfunded properties before they become problems.
• Reserve professionals can deliver interactive, scenario-ready reports that boards can actually use when setting budgets and approving projects.
  

In addition, PropFusion’s reserve study marketplace connects Georgia associations with vetted reserve study providers who understand the state’s legal framework and local cost environment, making it simpler to commission high-quality studies and stay aligned with best practices.