Washington HOA Reserve Study Requirements and Condo Reserve Fund Laws
Washington is one of the strictest states in the country when it comes to reserve study requirements for community associations. Between the Washington Condominium Act (RCW 64.34), the Homeowners’ Associations Act (RCW 64.38), and the Washington Uniform Common Interest Ownership Act (RCW 64.90), most residential condominiums and homeowners’ associations that maintain meaningful common property are expected to prepare and regularly update a reserve study.
At the same time, the law has evolved quickly. Older sections of the Condo Act and HOA Act are now cross-referenced with RCW 64.90 and scheduled for repeal in 2028, and there are narrow exemptions for certain nonresidential or “nominal reserve cost” communities.
This guide cuts through that complexity so Washington boards can understand what the law actually requires today, how often reserve studies must be updated, when an association might be exempt, and how to use reserve studies to comply with Washington state HOA budget laws and protect owners from surprise special assessments.
Legislation Link
RCW 64.38.065 - Washington Homeowners’ Associations Act
RCW 64.34.380 - Washington Condominium Act
RCW 64.90.545 - Washington Uniform Common Interest Ownership Act
Are reserve studies legally required for HOAs and condominiums in Washington state? In practical terms, yes for most residential communities that maintain shared building systems or significant common elements. Condominiums are expressly covered under RCW 64.34.380 and, together with HOAs and other common interest communities, are now tied into RCW 64.90.545, which requires associations that are not exempt to prepare and update a reserve study on a regular schedule.
How often must Washington associations update their reserve study? Washington law expects an annual update, with a full visual-site-inspection update by a reserve study professional at least every third year. That schedule appears in RCW 64.38.065 for HOAs and in RCW 64.90.545 for communities governed by the Uniform Common Interest Ownership Act.
Do Washington HOA reserve study requirements apply to very small or low-budget communities? Some very small or low-budget communities can be exempt. Historically, older law allowed exemptions if the cost of the study exceeded a percentage of the budget, the association did not have significant assets, or there were ten or fewer homes. Under RCW 64.90.545 and related provisions, exemptions focus on nonresidential communities, communities with “nominal reserve costs,” and situations where the cost of the study would exceed a specified share of the annual budget. Boards in borderline cases should get legal advice before assuming they are exempt.
What are “Washington state HOA budget laws” in the context of reserve studies? Washington budget laws require boards to prepare an annual budget, disclose reserve contributions, and share information from the most recent reserve study with owners. Under RCW 64.90, communities that are required to have a reserve study must circulate a summary and disclose whether the reserve funding plan is adequate, which directly ties reserve studies to the annual budget approval process.
PropFusion connects you with a vetted network of Reserve Study experts in your state, ensuring best industry standards.
Overview of Washington reserve study laws
Washington regulates reserve accounts and reserve studies through three main statutory frameworks:
- RCW 64.34 (Washington Condominium Act), including RCW 64.34.380 and related sections that require condominium associations to maintain a reserve account, prepare a reserve study, and update that study on a regular basis.
- RCW 64.38 (Homeowners’ Associations Act), including RCW 64.38.065 and RCW 64.38.070, which define reserve accounts, reserve studies, and the content that a compliant reserve study must contain for HOAs.
- RCW 64.90 (Washington Uniform Common Interest Ownership Act, or WUCIOA), particularly RCW 64.90.545 and 64.90.535, which now impose reserve study obligations across most common interest communities, and establish reserve account rules and enforcement mechanisms.
These regimes overlap. Existing condominium and HOA statutes have been amended to cross-reference RCW 64.90.545, and many of their reserve provisions are scheduled for repeal in 2028 as WUCIOA becomes the single framework.
For boards, the practical takeaway is simple: if your Washington association owns or maintains significant common property, you should assume that a reserve study is required unless you clearly fall within a specific statutory exemption.
Which Washington communities must obtain a reserve study
Washington law focuses on “associations with significant assets.” For most residential condominiums and HOAs, this includes any community that maintains roofs, building envelopes, private roads, parking lots, garages, elevators, clubhouses, pools, retaining walls, or other capital-intensive common elements with an expected life of more than a few years.
RCW 64.34.380 and 64.38.065 tie the requirement to these kinds of shared components, and RCW 64.90.545 extends the obligation broadly across common interest communities created after July 1, 2018, and to many older communities as well.
In practice, the following Washington associations should assume that reserve studies are part of their legal obligations:
- Residential condominium associations governed by RCW 64.34 or the older RCW 64.32.
- Homeowners’ associations with meaningful shared assets governed by RCW 64.38.
- Common interest communities created under RCW 64.90 after July 1, 2018, including mixed condominium and HOA structures.
- Many “old act” communities that, because of Chapter 64.90 RCW, are now subject to the same reserve study framework as newer communities.
The main categories that may be exempt are narrowly defined: nonresidential communities, communities with “nominal reserve costs” as defined in RCW 64.90.010, and communities where the cost of a reserve study exceeds a percentage of the annual budget.
Even then, these are technical determinations, and boards should confirm their status with qualified counsel rather than assuming they are outside the reserve study requirements.
How often Washington reserve studies must be updated
A recurring theme in Washington’s reserve law is that reserve planning is not a one-time exercise. RCW 64.38.065 and RCW 64.90.545 both require associations that are not exempt to:
- Prepare an initial reserve study based on a visual site inspection by a reserve study professional.
- Update the reserve study every year.
- Ensure that at least once every third year, the updated study is again based on a new visual site inspection by a reserve study professional.
Boards must treat it as a standing obligation tied to the annual budget cycle. A common best practice is to:
- Commission a full Level I or Level II reserve study (with site inspection) every three years.
- Use Level III “no site visit” updates in the off years, updating costs, inflation, and completed projects.
- Align each annual budget with the current reserve funding plan so owners see clearly how reserve contributions match upcoming capital needs.
Required contents of a Washington reserve study
Washington is unusually prescriptive about what a reserve study must contain. RCW 64.38.070 and the condominium counterparts (64.34.382 and related sections) describe a detailed content list, which has been echoed for WUCIOA communities. At a minimum, a compliant reserve study should include:
- A reserve component list identifying each major component that will require significant maintenance, repair, or replacement, typically any item that would cost more than one percent of the annual budget.
- For each component: remaining useful life, total useful life, and current estimated replacement cost.
- The association’s current reserve account balance and the percentage of “fully funded” reserves.
- A 30-year projection of reserve account balances, expected expenditures, and recommended contribution rates.
- At least two funding approaches: a full-funding plan targeting 100 percent funding by the end of the period, and a baseline plan that keeps the reserve balance above zero without unplanned special assessments.
- A clear disclosure that the study may not include every possible component and that missing components can still require special assessments, as required by statute.
How reserve studies tie into Washington HOA budget laws
Reserve studies are not just engineering reports. Under Washington state HOA budget laws, they directly inform the annual budget process and what must be disclosed to owners. WUCIOA requires that for associations subject to RCW 64.90.545, the board must:
- Include the cost of preparing or updating a reserve study in the annual budget when required.
- Circulate a budget summary and, in many cases, a summary of the most recent reserve study to owners.
- Disclose whether current assessments are projected to meet the recommended reserve funding level, and the consequences if they do not.
Older provisions in RCW 64.38 allow owners holding a portion of the association’s voting power to demand that the cost of a reserve study be included in the next budget if the association has gone too long without an update.
Under RCW 64.90.555, owners can also petition the court to compel compliance with reserve study requirements and may be awarded attorneys’ fees if they prevail.
What happens if a Washington association ignores reserve study requirements
Washington law distinguishes between damages and enforcement. Under RCW 64.38.085, HOAs and their boards cannot be sued for money damages solely because they failed to establish a reserve account or prepare a current reserve study, but that does not mean the law can be ignored.
WUCIOA adds teeth by allowing owners to demand a reserve study and seek a court order forcing the association to comply, including potential fee-shifting for attorneys’ fees. (wildernessrim.org)
Beyond formal enforcement, a missing or outdated reserve study creates real-world problems:
- Buyers and lenders increasingly expect current reserve information and may view the association as risky without it.
- Boards have little defense when they impose large special assessments if they have not followed statutory reserve planning practices.
- Communities risk falling short of future major repair needs, especially in climates where roofs, siding, and pavement deteriorate quickly.
Upcoming changes and the 2028 transition
The Washington legislature has already signaled that WUCIOA will ultimately govern reserve studies across common interest communities.
The RCW dispositions table for Chapter 64.34 shows that sections 64.34.380 through 64.34.392, which currently handle condominium reserve accounts and studies, are scheduled for repeal effective January 1, 2028. Similar changes apply across the chapter.
For boards, the safe strategy is to:
- Follow the existing detailed requirements in RCW 64.34 and 64.38 while they remain in force.
- Ensure your practices are already consistent with RCW 64.90.545 and its annual-plus-three-year inspection schedule.
- Treat any exemptions as narrow and carefully documented.
That way, as older statutes are retired and WUCIOA becomes the single framework, your association will already be operating at or above the required standard.
How PropFusion helps Washington associations stay compliant
A reserve study that sits as a static PDF in your files will not keep you compliant on its own. Washington’s legal framework expects boards to update numbers annually, adjust funding plans, and clearly communicate reserve funding decisions to owners.
PropFusion is built to support exactly that workflow for Washington associations:
- Centralize all Washington reserve studies, funding plans, and supporting documents for your communities.
- Model the impact of different funding strategies so boards can see how today’s budget decisions affect reserves over the next 30 years.
- Track upcoming projects and reserve component timelines so you can plan bids and construction before issues become emergencies.
- Share clear, easy-to-read reports with boards and owners that mirror the RCW content requirements and reduce confusion about contributions and reserve balances.
We also maintain a network of reserve study professionals who understand Washington’s specific statutory requirements, so boards searching for reserve providers can quickly connect with qualified experts and move from legal obligation to actionable plan.
FAQ
What is the difference between RCW 64.34, 64.38, and 64.90 for reserve studies in Washington?
RCW 64.34 is the Washington Condominium Act and contains detailed rules on condominium reserves and reserve studies. RCW 64.38 is the Homeowners’ Associations Act and addresses reserve accounts and studies for HOAs. RCW 64.90, the Washington Uniform Common Interest Ownership Act, overlays both and increasingly serves as the primary framework, requiring reserve studies for most common interest communities unless a specific exemption applies.
Are Washington reserve study requirements different for condominiums and HOAs?
The statutes are organized separately, but the practical requirements are now similar. Condominiums and HOAs with significant assets are expected to prepare an initial reserve study, update it annually, and obtain a new visual site inspection at least every third year. Some terminology and cross-references differ between RCW 64.34 and 64.38, but RCW 64.90.545 has harmonized the core obligations.
Can a Washington HOA or condo association vote to waive its reserve study entirely?
Under older law, there were more explicit exemptions tied to budget percentage thresholds and small association size, and some boards treated reserve studies as optional. With RCW 64.90.545 in place, the focus has shifted to narrow statutory exemptions for nonresidential communities, nominal reserve cost communities, and cases where a study would create an unreasonable hardship. A simple member vote is not a reliable way to “waive” the requirement, and boards should not assume they can opt out without a clear statutory basis.
How do Washington reserve study rules apply to very small communities with a few homes and minimal common property?
Small plat or single-family associations that maintain only minimal shared property sometimes qualify as having “nominal reserve costs” or find that the cost of a formal reserve study would exceed the allowed share of the annual budget. In those cases, they may be exempt. However, the thresholds and definitions are technical, and an incorrect assumption about exemption can create problems during sales, refinancing, or disputes. Legal advice is strongly recommended for any community that thinks it might be exempt.
What should a Washington board do if no reserve study has been performed in the last three years?
The safest approach is to treat that as a compliance gap. Boards should budget for a full reserve study by a qualified reserve study professional, schedule a site inspection, and implement the recommended funding plan. If owners demand a study under RCW 64.38 or RCW 64.90, the board may be legally obligated to include the cost in the next budget and complete the study by a specific deadline.
How do Washington reserve study requirements affect resale disclosures and buyer confidence?
Buyers, lenders, and their advisors increasingly review reserve balances and reserve study summaries in Washington. A current, statute-compliant reserve study that is reflected in the budget signals that the community is proactive and financially healthy. A missing, outdated, or clearly noncompliant study raises red flags and can reduce buyer confidence, affect lending decisions, and make it harder to justify large special assessments.
How can PropFusion help a Washington board implement what the statutes require?
PropFusion gives boards a structured place to store Washington reserve studies, test funding scenarios, and tie reserve contributions directly to the annual budget. Instead of manually updating spreadsheets, boards can use the platform to keep their reserve plan aligned to RCW content expectations, get visibility into upcoming projects, and share clear, understandable reserve information with owners and management.
Find a Reserve Study Company in Florida with PropFusion
Once you know what Florida law expects from your HOA, the next step is hiring the right reserve study firm. Through PropFusion’s Reserve Study Companies marketplace, your board can:
- Submit one request describing your community and scope.
- Get multiple proposals from vetted Florida reserve study providers.
- Compare pricing, scope, and timelines side by side and choose who to work with.
We don’t give legal advice or pick a vendor for you - we simply make it faster and easier to find qualified reserve study companies that understand Florida HOAs.
The information contained on this page is provided for informational purposes only, and should not be construed as legal advice on any subject matter. You should not act or refrain from acting on the basis of any content included on this page without seeking legal or other professional advice. The contents of this page contain general information and may not reflect current legal developments or address your situation. We disclaim all liability for actions you take or fail to take based on any content on this report.
PropFusion connects you with a vetted network of Reserve Study experts in your state, ensuring best industry standards.
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