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

Mississippi’s legal landscape for HOA and condo reserves

Mississippi does not have a single, comprehensive HOA act. Instead, most homeowners associations are formed as nonprofit corporations and are governed by their declarations, bylaws, and the Mississippi Nonprofit Corporation Act in Title 79, Chapter 11. 

Condominiums are governed by a separate statute, the Mississippi Condominium Law in Title 89, Chapter 9, which covers creation of the condominium, common elements, assessments, and liens but does not impose specific reserve study or reserve funding requirements.

Industry summaries of state reserve laws confirm that Mississippi stands out as a “no requirement” state. Community Associations Institute notes that there is no statutory requirement to conduct a reserve study and no statutory requirement to fund reserves for common interest communities in Mississippi. 

In practical terms, this means your board has significant discretion. The trade-off is that you also carry the full burden of getting your long term funding plan right.

What “no statutory requirement” really means for boards

The fact that Mississippi does not mandate reserves or reserve studies does not shield boards from responsibility. Directors of nonprofit corporations and condominium associations still owe a duty of care and a duty of loyalty to the association. 

That includes planning for predictable long term expenses such as roofs, pavement, siding, mechanical systems and major amenities.

If a board ignores long term planning and repeatedly relies on emergency special assessments, owners may argue that the board has failed to exercise reasonable care. 

Even if litigation never arises, the consequences are real: owner frustration, deferred maintenance, declining property values, and problems with buyers or lenders who expect associations to carry adequate reserves.

Think of Mississippi’s “no requirement” status as flexibility, not permission to underfund. In the absence of a statute telling you what to do, your governing documents and industry standards become the benchmark for what a prudent board should reasonably do.

Differences between HOAs and condominiums in Mississippi

From a reserve funding perspective, the biggest practical difference between HOAs and condominiums in Mississippi is not the statute but the nature of the common elements:

• Condominiums usually own structural components, building exteriors, roofs, corridors, elevators and mechanical systems. Even in a state with no reserve mandate, condo associations almost always need a formal reserve plan to manage these large shared assets.
• Many HOAs, especially those made up of single-family homes, may own primarily entry monuments, small parks, fencing, and limited shared improvements. Their long term funding needs may be smaller, but they still exist and should be planned for rather than handled via sudden special assessments. 

In both cases, your declaration and bylaws will describe which components are the association’s responsibility and therefore should be included in a reserve study.

Best practice reserve study guidance for Mississippi associations

Without a statutory rulebook, Mississippi boards should lean on well-established reserve study best practices, including the guidance produced by organizations such as Community Associations Institute. A practical framework looks like this:

Commission a baseline reserve study

For communities that have never done a reserve study, the first priority is a baseline study that documents:

• An inventory of all major common elements and assets for which the association is responsible.
• The current condition, remaining useful life, and estimated replacement cost of each component.
• A funding plan that projects contributions, interest, and expenses over at least 20 to 30 years.

In Mississippi, there is no legal requirement to use a particular credential, but most boards prefer firms that specialize in community association reserve studies and understand national standards.

Set a target funding level

Because state law does not specify a reserve funding percentage, boards should choose a target that balances risk and affordability. Many associations aim to keep reserves in at least the 70 to 100 percent funded range over time, meaning they have most or all of the money they will need based on the reserve study’s projections. 

Underfunded associations often face abrupt increases in assessments or special assessments when major projects come due.

Update every 3 to 5 years

Costs and conditions change. Even in the absence of a statutory timeline, updating the reserve study every 3 to 5 years is considered best practice. In fast-changing cost environments or after significant projects, shorter intervals can make sense. 

Between full updates, the board should at least revisit the funding plan annually during the budget process and adjust contributions as needed.

Align your budget and disclosures with the plan

Mississippi does not impose detailed reserve disclosure requirements the way some other states do, but that does not mean you should treat the reserve study as an internal document. For credibility and transparency, your annual budget and owner communications should:

• Show the planned reserve contribution for the coming year.
• Summarize the key upcoming projects over the next 3 to 5 years.
• Explain how current contributions align with the long term funding plan.

Owners may be more willing to accept realistic, steady contributions if they understand what the money will be used for and how it reduces the risk of disruptive special assessments.

Document board decisions

In a state with no statutory reserve mandate, your board minutes and resolutions become even more important. When you adopt a reserve funding plan, adjust contributions, or decide to defer a project, document the reasons and reference your reserve study. 

That record helps demonstrate that the board is acting thoughtfully and consistently, even if you are making trade-offs in a tight budget year.

Special considerations for small and self-managed associations

Many Mississippi associations are small and self-managed, sometimes with volunteer boards that have limited time and no professional management support. Even in these communities, a streamlined reserve study can be invaluable:

• It gives new board members an objective roadmap for what is coming due, instead of relying on institutional memory.
• It helps self-managed boards avoid undercharging assessments and then being forced into emergency special assessments.
• It provides third-party documentation that can reassure buyers, lenders and insurance carriers that the association is planning responsibly.

If a full-scope engineering study feels out of reach, some boards start with a simpler component list and cost estimates, then upgrade to a formal professional study as the budget allows.

How PropFusion supports Mississippi HOAs and condos

PropFusion is designed to make this entire process easier, especially in states like Mississippi where boards must set their own standards. Using PropFusion, boards and managers can:

• Centralize their reserve study, budget, and project data so that everyone is working from a single source of truth.
• Run “what if” scenarios on contribution levels and timelines to see how different decisions affect future cash flow and the risk of special assessments.
• Track upcoming projects and actual costs against the reserve plan, updating assumptions as real-world data comes in.
• Connect with a nationwide network of reserve study professionals who can prepare or update studies that meet industry best practices.

Because PropFusion supports communities in all 50 states, the platform can also accommodate future statutory changes. If Mississippi ever adopts formal reserve study or reserve funding requirements, you will already have a structured data set and workflows in place to demonstrate compliance.

Key takeaways for Mississippi boards and managers

For Mississippi HOAs and condominium associations, the core message is simple: state law does not currently require reserve funds or reserve studies, but prudent boards act as if it did. You must rely on your governing documents, your duty of care, and industry standards to build a funding plan that protects your owners and your property values.

A clear, professional reserve study, updated regularly and backed by a realistic funding plan, will put your association in a stronger position with owners, buyers, lenders, and insurers. Using tools like PropFusion to manage that plan turns reserve planning from a one-off project into an ongoing, data-driven process.

Finally, remember that this guide is informational only and does not replace legal advice. For questions about how Mississippi law applies to your specific association, always consult a Mississippi-licensed community association attorney.