Are Reserve Studies Required in Washington State?
Are Reserve Studies Required in Washington State?
Understanding Reserve Study Requirements for HOAs in Washington
If you’re part of a homeowners association (HOA) in Washington State, you’re likely asking whether a reserve study is required for your HOA? In most cases, the answer is yes. Washington law generally requires HOAs to conduct and update a reserve study annually, unless they meet certain exemption criteria.
Reserve Study Exemptions for Small HOAs and Condominiums
Washington law recognizes that very small associations may not need the same level of financial reporting as larger communities. If your HOA was established before July 1, 2018, it may qualify for exemption from certain reserve study requirements if any of the following apply:
- The cost of the reserve study exceeds 5% of the association’s annual budget
- The association has minimal common area assets
- There are 10 units or fewer in the association
For associations created after July 1, 2018, the law provides similar relief. Specifically, if the community consists of 12 units or fewer and annual assessments are $300 or less per unit, and the declarant no longer holds special rights, the association may be exempt from many parts of the Washington Uniform Common Interest Ownership Act (WUCIOA).
Should Small HOAs Skip a Reserve Study?
Even if your HOA qualifies for an exemption, it’s usually not advisable to forgo a reserve study entirely. Smaller associations still face major expenses — roof replacements, siding repairs, or other capital projects — and a reserve study is the best way to plan for them.
Many small HOAs mistakenly believe that an exemption removes all reserve planning responsibilities, which is not the case. Washington law still expects associations to:
- Create a reserve funding plan
- Maintain a separate reserve savings account
- Provide annual financial disclosures to members, including potential special assessments
Transparency and preparation are essential, even for exempt communities.
Best Practices for Exempt or Small Associations
If your HOA is exempt from the formal reserve study requirement, you can still develop an internal reserve plan. It’s wise to review your association’s financial health regularly and communicate clearly with members about upcoming maintenance costs or special assessments.
When in doubt, consult a reserve study professional to help evaluate your long-term funding needs and avoid surprises.
Final Thoughts: Do Washington State HOAs Need a Reserve Study?
In summary, most HOAs in Washington State are required to complete a reserve study, but exemptions exist for very small or low-budget associations. Regardless of size, financial planning and transparency are critical. Don’t let exemption status stop your board from making smart decisions about future costs.
If you're unsure whether your HOA qualifies for an exemption — or simply want to build a responsible funding strategy — consider reaching out to a qualified reserve study provider.