How much should a HOA have in reserves?

Reporting and disclosure requirements are in place for both condominium (condo) and homeowner (HOA) associations in Washington State. An association’s board of directors must annually disclosure and provide a reserve fund summary (RCW 64.34.308, RCW 64.38.025) to it’s owners and/or members. The ‘seven part’ information summary should be disclosed as part of the summary of the budget:

The reserve study is a budget planning tool that helps you understand the financial position of your association, and provides an understanding as to what options the association has moving forward. It not only identifies the current status of your reserve fund, it helps establish a stable and equitable funding plan to offset the anticipated future expenditures.