CAI Updates Reserve Study and Funding Public Policy
The CAI Board of Trustees approved an important update to its public policy on reserve studies and funding to align with the CAI Reserve Study Standards. CAI continues to review critical condominium safety public policy to ensure our policy positions reflect the evolving best practices and needs of condominium and community association governance. The goal is to protect the financial stability and quality of life for millions of homeowners nationwide.
As the leading advocate for the 77 million Americans living in homeowner associations, condominiums, and cooperatives, CAI recognizes maintaining the physical and financial health of community associations is essential. A reserve study is a formal analysis of a community’s common areas, components, and future repair and replacement costs that help boards and managers plan responsibly for long-term maintenance and avoid large, unexpected special assessments that can burden owners.
In recent years, we have seen a notable surge in state legislation focused on reserve requirements and funding, particularly following the 2021 tragic condominium collapse in Surfside, Fla. State policymakers across the country are recognizing the critical role reserve studies play in protecting lives, property, and community assets.
So far in 2025, CAI has tracked 20 bills in 11 states addressing reserve requirements, funding mandates, and reserve study standards. You can follow the latest updates on our Reserve Requirements Legislative Tracking page, where we provide ongoing summaries and links to active proposals.
Currently, 33 states have enacted laws regulating reserve funding and studies — from setting minimum funding levels to requiring associations disclose reserve account details to owners. You can explore the full summary in CAI’s Summary of State Reserve Fund Laws, which provides an at-a-glance overview of how states are addressing these crucial issues.
Legal Framework to Support Community Associations. Condominium and community association boards, supported by professional community managers, are stewards of their communities. They must balance today’s needs of keeping assessments reasonable and operations smooth with tomorrow’s challenges, including maintaining aging infrastructure, complying with safety requirements, and planning for capital repairs.
Updated reserve study standards and aligned funding policies provide a clear framework for boards to make informed, transparent decisions. Strong state laws help ensure that reserve planning is backed by a legal framework.
This is especially vital for condominiums, where the cost of maintaining shared structural elements like roofs, balconies, and foundations can be substantial. Without adequate reserves, the financial burden can fall suddenly on individual owners, threatening both housing affordability and property values.
CAI continues to lead advocacy efforts to promote laws supporting sound financial planning, community maintenance, and the long-term stability of homeowner associations, condominiums, and cooperatives. We encourage all board members, community managers, and homeowners to explore CAI’s Public Policy on Reserve Study and Funding and understand how these standards guide responsible governance.
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Dawn Bauman, Chief Strategy Officer. As CAI’s lead advocate for federal and state legislative and regulatory affairs, Dawn works with volunteer leaders throughout the country serving on CAI legislative action and government affairs committees to advocate for strong and sensible public policy for America’s community associations.