Reserve Studies in New Hampshire: What Associations Need to Know

When it comes to long-term financial planning, reserve studies are one of the most important tools available to condominium and homeowners associations. In New Hampshire, the legal landscape around reserve funding is evolving—and while the state doesn't currently require professional reserve studies, new legislation and best practices are encouraging more associations to take a proactive approach.

Under New Hampshire RSA 356-B, which governs condominium associations, boards are required to prepare an annual budget that includes a reserve line item for future capital expenditures and repairs. However, the law stops short of mandating a formal reserve study or dictating how much should be contributed. This has led to wide variation in funding levels across associations. Some communities maintain strong reserves, while others risk special assessments due to insufficient planning.

Ultimately, while New Hampshire law provides flexibility, the best practice for associations is to commission a professional reserve study every 3–5 years, with annual updates during the budgeting process. This ensures that common elements—like roofs, roads, siding, and plumbing—are repaired or replaced on schedule without surprise special assessments. A well-funded reserve also protects property values and supports smoother community operations.

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