HOA Reserve Study Questions Texas Boards Ask

Two parts. The physical side is an inventory of the shared items the HOA keeps up, from roofs to pavement, each with years left and a current price. A financial analysis compares the reserve balance with what those components will need and sets a yearly contribution. That is how CAI’s reserve study standards describe it.

It compares what is in the reserve account with the portion of every component’s cost that wear has already eaten into. A community at 100 percent has saved exactly what wear so far would justify. Few Texas HOAs are there; the trend matters more than the number.

As far as we can find, Texas does not license reserve study providers as such. So ask each one who will prepare and sign the report, which professional designations that person holds and how many Texas communities like yours they have studied.

The declaration, the latest budget and financial statements, the current reserve balance, the last study if there is one, plats or drawings, and a list of anything replaced in the last few years.

No. Neither Chapter 209 nor Chapter 82 of the Property Code requires one. Your declaration might, so read it. More in our Texas law guide.

If the association has one, it is part of its books and records, which HOA owners can inspect or copy on written request under section 209.005. Condo owners have a similar right under section 82.114.

Usually not; the board adopts the budget. But a dues increase above a cap in your declaration may need a vote. Check with the association’s attorney.

Fannie Mae and FHA condo project reviews expect a tenth or more of assessment income to be set aside as reserves, unless a recent study shows a lower amount is adequate.

No. The provider we introduce pays us a fee; the association pays the provider’s own fee only if the board signs a proposal.

Anyone can ask. A homeowner’s request is useful for getting a figure in front of the board, but only the board can engage a provider.

We name a provider within one business day. Proposals usually follow within a week or two. See how it goes.