Ohio Condominium Law Reserve Funds & HOA Reserve Requirements (2026 Guide)

Overview of Ohio reserve funding laws

The most frequent question Ohio board members ask is: how much do we legally have to save, and what happens if we do not? 

Ohio answers this with two companion statutes:

• The Ohio Condominium Act (ORC Chapter 5311) governs condominium associations.
• The Ohio Planned Community Act (ORC Chapter 5312) governs most detached-home HOAs and other planned communities.

Both statutes require boards to adopt budgets that include reserves in an amount adequate to repair and replace major capital items in the normal course of operations without relying on special assessments, unless owners vote annually to waive reserves.

There is no statutory requirement to perform a reserve study, but reserve funds themselves are not optional unless the membership waives them. Boards either fund reserves properly, or they must get an annual vote acknowledging that owners accept the risk of under-funded reserves and potential special assessments.

Are reserve studies required in Ohio?

Ohio law is clear on this point: reserve studies are not mandated for either condominiums or HOAs. The statutes speak in terms of “adequate” reserves, budgets, and waiver votes - they do not prescribe engineering reports or specific study formats. (Ott & Associates Co., LPA)

However, top Ohio community association law firms are blunt: without a reserve study or equivalent analysis, it is nearly impossible for a board or owners to know whether reserves are adequate or what exactly is being waived. 

A reserve study lists each major component (roofs, pavement, siding, mechanical systems), estimates useful life and replacement cost, and calculates the annual reserve contributions needed so that funds are available when each item fails. (Kaman & Cusimano)

In practical terms, an Ohio board that refuses to get a reserve study is choosing to guess at adequacy. That may technically comply with the “no study required” language, but it increases the risk of miscalculating needs, levying large special assessments later, and facing owner disputes or even legal challenges over budget decisions.

Ohio condominium law reserve funds (ORC 5311.081)

For condominiums, Ohio Revised Code 5311.081(A)(1) sets three key expectations:

• The board must adopt and amend budgets for revenues, expenditures, and reserves.
• The reserves must be adequate to repair and replace major capital items in the normal course of operations without the need for special assessments.
• The amount set aside for reserves each year cannot be less than 10 percent of that year’s total budget unless owners exercising a majority of the association’s voting power vote annually to waive that requirement. 

Many boards mistakenly think the law simply requires them to put 10 percent of the budget into reserves. Leading Ohio condo firms have repeatedly clarified that this is wrong. 

The real requirement is “adequate” reserves to avoid special assessments; the 10 percent language is only a floor in situations where adequacy would otherwise be less than 10 percent. 

For example, if a new high-rise condo has a $1,000,000 annual budget and a professional reserve study says it needs $180,000 per year to build a fully funded reserve plan, the board cannot choose to fund only $100,000 just because 10 percent of the budget is $100,000. 

Adequate funding in this scenario is 18 percent of the budget, and the board must either fund that amount or get owners to formally waive reserves for that year.

Reserve requirements for Ohio HOAs and planned communities (ORC 5312.06)

For planned communities and typical Ohio HOAs, ORC 5312.06 requires the owners association to:

Annually adopt an estimated budget for revenues and expenditures.

Include reserves in that budget in an amount adequate to repair and replace major capital items without the necessity of special assessments, unless the owners, exercising at least a majority of the voting power, vote annually to waive the reserve requirement.

Unlike the condominium statute, the Planned Community Act does not set a specific percentage such as 10 percent. Adequacy is entirely tied to the community’s actual capital items - roads, amenities, retaining walls, common facilities, and so on. 

A small HOA with only an entry sign and landscaping will have a very different “adequate” reserve number than a large, amenity-heavy planned community with pools, clubhouses, and private roads.

Again, Ohio law does not require a reserve study, but legal commentators emphasize that a reserve study is the most straightforward way to determine what “adequate” means in your specific community and to explain that number to owners when they are asked to waive funding.

Annual waiver votes and the risk of under-funded reserves

Both statutes give owners the power to waive reserve funding, but only by a conscious, documented majority vote every year. If a board simply omits reserves from the budget without obtaining that vote, it is out of compliance with Ohio law.

If your association is considering a waiver:

• Owners must be told what they are waiving - ideally with a reserve study or equivalent cost estimates attached.
• The vote must represent a majority of the association’s voting power, not just a majority of those present at a meeting.
• The waiver only applies for that fiscal year. Next year requires another vote if reserves will again be under-funded.

Waiving reserves can keep assessments lower in the short term, but it sharply increases the risk of large special assessments and can affect mortgage approvals and resale values. Lenders and buyers increasingly ask for reserve information and, in many cases, want to see that reserves are being funded in line with a professional study.

Condo association reserve fund guidelines in Ohio

In Ohio, there is no single percentage that works for everyone beyond the 10 percent minimum for condominiums. Instead, boards should think in terms of:

• Adequacy: Will reserves, if funded as budgeted, allow you to repair and replace major items over their life cycles without resorting to special assessments, assuming no major surprises?
• Time horizon: A 20- to 30-year projection is standard in professional reserve studies and lines up with how lenders look at association health.
• Risk tolerance: Some boards target “fully funded” reserves; others accept a baseline funding approach where reserves sometimes drop low but never to zero over the projection period.

For many Ohio condos and HOAs with typical amenities, the result of a professional reserve study is often a recommended annual contribution in the 15-25 percent of budget range - sometimes higher for aging or amenity-heavy communities. 

The correct number for your association depends on your components, not a generic rule of thumb.

Step-by-step roadmap for Ohio boards

To turn Ohio’s HOA and condominium reserve requirements into concrete action, boards can follow a simple framework:

Step 1 - Confirm which statute applies.

Determine whether your association is a condominium (ORC 5311) or a planned community (ORC 5312). Mixed or master-association structures may have both types of components; in those cases, your attorney can clarify which rules apply to which parts of the property.

Step 2 - Commission or update a reserve study.

Even though Ohio does not mandate reserve studies, boards that want to stay out of trouble usually treat them as essential. Hire an experienced reserve study firm that works regularly with Ohio condos and HOAs. Make sure the study includes a full component inventory, useful life and cost estimates, and a 20- to 30-year funding plan.

Step 3 - Compare the study to your current budget.

Look at the annual reserve contribution recommended by the study and compare it to what you are actually setting aside. If your current contribution is below the recommended level, you are effectively under-funding reserves. Decide whether you will phase in increases toward full funding, or whether you will ask owners to waive reserves for a limited period.

Step 4 - Decide on waiver versus full funding.

If you choose full funding, build the recommended reserve contribution into your annual budget and explain the long-term savings to owners (fewer surprises, less risk of special assessments, better resale values). If you choose to waive reserves or fund below the recommended level, work with your attorney to prepare a clear ballot and disclosure so owners understand the risk.

Step 5 - Document decisions and keep owners informed.

Keep copies of reserve studies, waiver ballots, and owner notices as permanent records. Communicate the association’s reserve strategy in plain language - especially if you are under-funding reserves or using special assessments to catch up.

How PropFusion supports reserve planning for Ohio associations

Ohio’s legal framework sets the ground rules; PropFusion helps you execute. For boards, association managers, and reserve professionals working in Ohio, PropFusion can:

• Organize all your component and cost data in one place, aligned with professional reserve study standards.
• Model different funding levels - from fully funded reserves to phased-in increases or temporary under-funding - and show the long-term impact on balances and project timing.
• Track your annual reserve contributions against what your study recommends, helping the board see whether it is staying aligned with the plan owners voted for.
• Generate clear, board- and owner-friendly reports that break down Ohio reserve requirements and your association’s current status.

If you do not yet have a reserve study, PropFusion’s Ohio reserve study companies marketplace connects you with established providers who understand Ohio condominium law reserve funds, Ohio HOA reserve requirements, and local construction costs. 

From Ohio-specific legal context to day-to-day budgeting, you can manage everything in one integrated platform rather than juggling spreadsheets and separate PDFs.