Nevada HOA Reserve Study and Reserve Fund Requirements (2026 Guide)

Overview of Nevada’s reserve study and reserve fund framework

Nevada’s Common-Interest Ownership Act (NRS 116) sets out a detailed framework for how common-interest communities - including most HOAs and condominium associations - must plan and pay for long-term capital repairs. Two statutes sit at the center of that framework:

• NRS 116.3115, which requires associations to establish adequate reserves for major components and limits how reserve money may be used.
• NRS 116.31152, which requires the executive board to commission regular reserve studies, review those studies annually, and adjust the funding plan as needed.

Nevada Administrative Code Chapter 116 and Real Estate Division guidance fill in the details by defining “reserve study,” specifying timing for future studies, and explaining how associations must file a summary with the Division on Form 609 and report reserve information to owners and buyers.

Which associations must comply

Most planned communities and condominium associations in Nevada fall under NRS 116. If your community is a “common-interest community” with shared common elements, a recorded declaration, and an association that levies assessments, it is very likely subject to these reserve requirements, whether it is a traditional HOA, condo association, townhome community, or master-planned community.

There are limited exemptions and nuances for very small associations or certain types of developments. Because the consequences of getting this wrong can be significant, boards should confirm with association counsel or a Nevada-licensed community manager whether their community is fully subject to NRS 116 reserve provisions.

How often Nevada HOAs must conduct reserve studies 

Under NRS 116.31152, the executive board must:

• Cause a study of the reserves to be conducted at least once every five years, covering the major components of the common elements and any other portions of the community the association must maintain, repair, replace, or restore.
• Review the results of that study at least annually to determine whether reserve levels are sufficient.
• Make any necessary adjustments to the association’s funding plan to provide adequate funding for required reserves.

NAC provisions and Real Estate Division guidance provide additional timing detail. After a full reserve study with a site visit is conducted, the next full study must be commenced on or as close as practical to the same month and date as the previous on-site inspection, effectively locking associations into a consistent five-year cycle.

In practice, Nevada boards should treat the five-year window as a hard outer limit, not a target. Starting the process early gives room for site inspections, draft reviews, budget integration, and Form 609 filings without scrambling against statutory deadlines.

What must be included in a Nevada reserve study

Nevada law does not treat the reserve study as a simple “rule of thumb” schedule; it prescribes specific elements that must appear in the study. At minimum, the study must include:

• A summary of an inspection of the major common-area components and any other elements the association must maintain.
• Identification of major components with a remaining useful life of less than 30 years.
• An estimate of the remaining useful life for each of those components.
• An estimate of the cost to maintain, repair, replace, or restore each component during and at the end of its useful life.
• An estimate of the total annual assessments needed to cover those costs, factoring in existing reserve balances, and a funding plan that will provide adequate reserves over time.

Nevada Administrative Code also defines “reserve study” and outlines required disclosures, including the qualifications of the person conducting the study, assumptions used, limitations of the inspection, and any components excluded from the funding projection. This ensures boards and owners can understand both the numbers and the underlying methodology.

Adequate reserves and acceptable funding plans

Under NRS 116.3115, the association must establish adequate reserves, funded on a reasonable basis, for the repair, replacement, and restoration of major components.

Reserve money may only be used for those long-term capital purposes (e.g., roofs, roads, sidewalks, mechanical systems) and may not be treated as a backup operating or “slush” fund.(Justia Law)

The statute explicitly allows the board to comply via an actuarially sound funding plan that spreads costs over a period of years, as long as the plan ensures sufficient money is available when those components must be repaired or replaced. 

In other words, Nevada does not require 100 percent funding overnight, but it does expect a rational, data-driven plan tied to the reserve study.

Importantly, NRS 116.3115 permits the board to levy necessary and reasonable assessments to carry out that funding plan, even without owner approval, when needed to establish adequate reserves. That means boards cannot simply ignore underfunding because owners dislike increases; the law gives boards the authority and responsibility to correct the problem. 

Recent commentary and enforcement attention in Nevada highlight that regulators are increasingly focused on whether reserves are truly adequate rather than just whether a study exists.(Las Vegas Review-Journal)

Handling the reserve account and withdrawals

Nevada law also regulates how the reserve account is handled. Associations must maintain a separate reserve account and a separate reserve budget. Money in that account can be used only for the reserve purposes identified in the study and may not be diverted for routine operating costs.

NRS 116.31153 limits how money can be withdrawn from the reserve account, typically requiring the signatures of designated officers or directors and restricting who can initiate transfers. 

These safeguards are designed to prevent misuse of reserve funds and to ensure that withdrawals align with the adopted reserve plan and component list. (FindLaw Codes)

Boards should adopt internal controls around reserve account access, including clear signatory policies, dual-control requirements, and regular reconciliations, and should confirm that any transfers or expenditures are traceable back to items in the reserve study.

Filing Form 609 and reporting reserve information

After the board receives a draft reserve study, Nevada regulations require the board to adopt the study and submit a summary of its results to the Nevada Real Estate Division on Form 609 within statutory deadlines. 

Guidance from the Division indicates that associations must have a new reserve study performed every five years and that the board must both adopt the study and file the Form 609 summary within a fixed period after receiving the draft, with the statute also referencing a 45-day filing window after adoption.(red.nv.gov)

The Division’s “Understanding Reserve Studies” brochure further emphasizes that reserve information should be reviewed regularly at board meetings and included in resale packages, giving potential buyers a clear view of the community’s reserve “strength” before they purchase.(red.nv.gov)

In practical terms, Nevada boards should build a recurring calendar: commission the study early in the cycle, review drafts with management and the preparer, formally adopt the study, file Form 609, and then incorporate the updated funding plan into the annual budget and owner communications.

Common compliance pitfalls in Nevada

Despite the clarity of Nevada’s statutes, several recurring issues show up in enforcement actions and professional commentary:

• Treating the reserve study as a one-time exercise rather than a living planning tool reviewed annually.
• Letting the five-year cycle slip, especially after board or management turnover.
• Using reserve funds for operating shortfalls or projects not identified in the reserve study.
• Ignoring the funding plan and keeping assessments artificially low, resulting in chronic underfunding.
• Failing to submit Form 609 or to integrate reserve information into budgets and resale packages.

Addressing these issues is not just about avoiding fines or complaints; it is about preventing large special assessments, protecting property values, and demonstrating transparent, responsible governance to owners and buyers.

Practical checklist for Nevada boards and managers

To operationalize Nevada’s reserve requirements, boards and community managers can follow a simple workflow:

1. Confirm that your community is subject to NRS 116 and that you understand any special provisions in your governing documents.
2. Locate your current reserve study and Form 609 filing; note the date of the last on-site inspection and the adoption date.
3. If you are approaching (or have passed) the five-year mark, schedule a new full reserve study with a Nevada-permitted reserve study specialist.
4. Provide complete component inventories, maintenance history, and cost information to the preparer to improve accuracy.
5. Review the draft study at the board level, focusing on component list, useful life, cost assumptions, and recommended funding levels.
6. Adopt the study at an open board meeting and document the decision in the minutes.
7. File the Form 609 summary with the Real Estate Division within the required time frame.
8. Integrate the recommended funding plan into your annual budget and owner assessment schedule, and update your disclosures and resale packages.
9. Each year, review the study, compare actual reserve balances to the plan, and adjust funding if necessary.

How PropFusion helps Nevada HOAs and condos stay compliant

While Nevada law does not require you to use software, trying to manage all of these requirements with spreadsheets and email chains is risky. PropFusion is designed to make compliance with Nevada’s reserve study framework simpler and more transparent.

• Using PropFusion, Nevada associations and their managers can:
• Centralize all past and current reserve studies and component inventories in one place.
• Track five-year study deadlines and annual review dates with automated reminders.
• Model different funding scenarios (e.g., gradual increases versus front-loaded assessments) while staying aligned with “adequate reserve” requirements.
• Share clear dashboards and reports with board members and owners showing funding status and projected future needs.

Connect with a established network of Nevada reserve study professionals who understand NRS 116 and Nevada Real Estate Division expectations.

By combining a solid understanding of Nevada’s legal requirements with a purpose-built platform, Nevada HOAs and condos can move beyond bare-minimum compliance and proactively manage their long-term capital obligations, reducing surprises and strengthening community finances.