Missouri HOA Reserve Fund & Reserve Study Requirements (2026 Guide)

Missouri’s legal framework for HOAs and condominiums

From a reserve planning perspective, Missouri divides into two broad categories:

• Condominiums created after the adoption of the Missouri Uniform Condominium Act are governed by Mo. Rev. Stat. §§ 448.1-101 to 448.4-120.
• Most homeowners associations for single family or townhouse communities are set up as nonprofit corporations and governed primarily by their declaration, bylaws and the Missouri Nonprofit Corporation Act.

There is no comprehensive HOA statute that sets out reserve obligations for non condo HOAs. 

For condominiums, the Uniform Condominium Act references reserves in the context of budgets and resale certificates, but does not impose a mandatory reserve study or reserve funding formula.

For boards, this means your governing documents and fiduciary duties carry more weight than state statutes when it comes to reserves. The law gives you tools, not a detailed recipe.

What the Missouri Uniform Condominium Act actually requires on reserves

Two sections of the Uniform Condominium Act matter most for reserves.

First, section 448.3-102 sets out the powers of the unit owners association. Among other things, it provides that the association may adopt and amend budgets for revenues, expenditures and reserves, and collect assessments for common expenses from unit owners.

This is an enabling provision. It confirms that associations are expected to consider reserves as part of their budgeting process and gives them clear authority to levy assessments to fund those reserves.

Second, section 448.4-109 governs resales of units. It requires a unit owner who is selling to provide a resale certificate that includes a range of financial information, including the amount of any reserve funds for capital expenditures and any portions of those reserves designated by the association for specific projects. 

Taken together:

• Missouri law expects condo associations to think about reserves in their budgets.
• Missouri law requires transparency about reserve balances and designations when a unit is sold.
• Missouri law does not dictate how much must be in reserves or require a reserve study to support those numbers.

This is consistent with national summaries that state there is no statutory requirement to conduct a reserve study and no statutory requirement to fund reserves in Missouri.

Are reserve studies required in Missouri?

Short answer: no.

There is no Missouri statute that sets a mandatory frequency such as “every five years” or “with each major project.”

This is a legal fact, but it is not a recommendation. Lenders, insurers and buyers increasingly expect to see evidence of reserves and long term planning, especially in multifamily and amenity rich communities. 

A board that chooses to skip reserve studies is not breaking Missouri law, but it is choosing to operate without a roadmap.

How reserve expectations differ for Missouri condos and HOAs

Condominiums in Missouri typically own and maintain the building shell and common systems: roofs, exterior walls, elevators, corridors, mechanical equipment and sometimes structured parking. Those components are expensive and shared. 

Even without a statutory reserve mandate, condo boards that do not plan for these costs almost inevitably end up levying large special assessments when major systems reach end of life.

For most HOAs in Missouri, the common elements can be lighter: entry monuments, private streets, detention basins, clubhouses or pools, fencing and landscaping. 

The dollar amounts may be smaller, but the principle is the same. If the board does not set money aside, it will eventually need to either defer maintenance or ask owners for large one time payments.

A key difference is that condo boards face a statutory resale certificate that must disclose reserve balances and capital expenditure expectations. 

HOA sellers do not face an identical statutory resale requirement, but buyers and agents still ask for budgets and financials in practice, and the same reputational and market pressures apply.

Best practice reserve study and funding strategies in Missouri

Since the state legislature has not written a detailed rulebook, Missouri boards should rely on best practice standards used nationwide:

• Commission a professional reserve study. This should include a component inventory, condition and remaining life estimates, current replacement costs and a 20 to 30 year funding projection. Independent experts such as reserve specialists or engineering firms are preferred.
• Refresh the study on a regular cycle. Without a legal timetable, the usual rule is a full study every 3 to 5 years, with lighter interim updates when major projects are completed or costs jump significantly. Missouri specific guidance from management firms mirrors this 3 to 5 year recommendation.
• Choose a funding objective. With no statutory minimum, boards should adopt a target percent funded range that fits their risk tolerance, for example aiming for 70 to 100 percent funded over time instead of running reserves close to zero.
• Tie assessments to the plan. Annual budgets should be built around the reserve study’s funding recommendations, not last year’s dues plus an arbitrary percentage. If assessments have historically been too low, a phased series of increases may be necessary to close the gap without shocking owners.
• Avoid the “no reserves” trap. Some Missouri boards are tempted to keep dues artificially low and rely on special assessments. This is almost always a false economy. Owners are less prepared for irregular large bills than for predictable monthly increases, and chronic underfunding can make units harder to sell or finance.

Using Missouri’s disclosure rules as leverage, not a checkbox

The Uniform Condominium Act’s resale certificate requirement is often treated as an administrative burden, but it can be a powerful accountability tool. The certificate must disclose:

• anticipated capital expenditures for the current and next two fiscal years, and
• the amount of reserve funds for capital expenditures, including any portions earmarked for specific projects.

If your association discloses minimal reserves alongside significant anticipated capital work, buyers and their lenders will see the mismatch immediately. 

Boards should treat that prospect as motivation to adopt a professional reserve plan, not as a reason to gloss over the issue.

Even HOAs without a statutory resale certificate can borrow this thinking. Providing buyers with a clear picture of reserves and planned projects builds confidence in the community and reduces unpleasant surprises.

Step by step reserve planning for Missouri boards and managers

A practical, Missouri specific action plan looks like this:

1. Map your legal and document environment
   
   • Confirm whether your community is a condo under the Uniform Condominium Act or an HOA that relies on the Nonprofit Corporation Act plus your governing documents.
   • Identify which components are association responsibility and must be included in reserve planning.
2. Assess your current position
   
   • Compile current reserve balances, upcoming known projects and any historical reserve studies.
   • Identify obvious gaps such as aging roofs, pavement or mechanical equipment with no dedicated funding.
3. Commission or update a reserve study
   
   • Engage a reserve professional who understands Missouri conditions and national standards.
   • Ask for multiple funding scenarios so the board can see options for more gradual versus more aggressive contribution paths.
4. Adopt a written reserve funding policy
   
   • Decide on a target funding range and contribution strategy.
   • Document the policy in board resolutions and, if appropriate, in updated bylaws or other governing documents.
5. Align budgets and communication
   
   • Integrate recommended reserve contributions into the annual budget.
   • Communicate clearly with owners about why assessments are set at current levels and what projects are being funded.
6. Monitor and adjust
   
   • Use each budget cycle to compare actual balances and costs to the reserve study projections.
   • Adjust contributions and project timing as needed, documenting the reasons in meeting minutes.

How PropFusion supports Missouri communities

PropFusion already serves Missouri communities through its law guides and marketplace for reserve study professionals, and the platform is built to handle states like Missouri that give boards wide discretion.

Using PropFusion, Missouri boards and managers can:

• Request and compare proposals from established reserve study firms that understand the Missouri Uniform Condominium Act, local costs and lender expectations. 
• Store reserve studies, budgets and project histories in one place so that leadership transitions do not wipe out institutional knowledge.
• Run funding scenarios that show how different contribution levels affect future reserve balances and the likelihood of special assessments.
• Generate clear, owner friendly reports that tie reserve planning back to actual projects and timelines, making it easier to justify assessment decisions.
• Keep documentation organised for resale certificate preparation and for buyers, lenders and insurers who want evidence of responsible long term planning.

In a state where the statutes give you freedom but not detailed guardrails, having this combination of expert input and structured tools is the most reliable way to avoid crisis funding and keep your association on solid ground.