New Survey Finds Nearly Two-Thirds of HOA Boards Lack Confidence in Their Reserve Plans

Nationwide survey of HOA boards reveals widespread uncertainty in reserve funding, highlighting the growing need for modern HOA management software

INDIANAPOLIS, IN, UNITED STATES, February 10, 2026 /EINPresswire.com/ -- A new nationwide study released today by HOA Start, the leading HOA management software for self-managed homeowners associations, finds that nearly two-thirds of HOA and condominium boards are not confident that their current reserve plans are sufficient—a troubling signal as communities face rising costs, aging infrastructure, and increased financial scrutiny.

The findings come from the 2026 State of HOA Reserves & Long-Term HOA Financial Planning report, which combines national industry research with direct survey responses from 56 active HOA and condominium associations. The study shows that while most associations maintain reserve accounts and have commissioned reserve studies, many lack the systems, visibility, and governance structure required to manage long-term capital obligations effectively.

“What we’re seeing isn’t a lack of awareness—it’s a lack of operational control,” said Clayton Thompson, CEO of HOA Start. “Boards are being asked to manage 20- to 30-year financial liabilities using spreadsheets, PDFs, and institutional memory. That approach simply doesn’t hold up in today’s environment.”

Confidence Is Low—and the Risks Are Rising
According to the study, reserve underfunding is no longer a distant or hypothetical risk. Boards reported widespread uncertainty around core questions such as:

Whether they are contributing enough to reserves each year
How their funding levels compare to similar communities
Whether their reserve studies are current or being followed
How to avoid disruptive special assessments

Nearly two-thirds of respondents said they were not confident—or only somewhat confident—that their reserve plans would cover future major repairs, including roofs, structural components, roads, and major mechanical systems.

The report also highlights a consistent pattern: associations with fragmented or manual tracking systems are significantly more likely to report uncertainty, surprise expenses, and reliance on special assessments.

From Financial Math to Operational Reality
Industry benchmarks and reserve studies have been widely available for years. The problem, the report concludes, is not technical knowledge—but execution. Boards are increasingly expected to:

Track reserve components and forecasts over decades
Integrate reserve funding into annual budgets
Coordinate vendors, capital projects, and funding timelines
Maintain continuity across board turnover

Yet many associations still rely on tools that are person-dependent, error-prone, and difficult to audit.

“Reserve funding is no longer just a financial exercise—it’s an operational one,” Thompson added. “Without centralized systems to manage reserves, vendors, projects, and documentation, boards are forced to make critical decisions with incomplete or outdated information.”

Why HOA Management Software Has Become Essential
The study underscores a growing reality for self-managed associations: long-term financial health now depends on durable systems, not volunteer heroics. Modern HOA software enables boards to:

Centralize reserve studies, funding plans, and key documents
Track capital projects and vendor activity in one system
Preserve continuity during board transitions
Improve transparency with homeowners
Replace uncertainty with visibility and discipline

As regulatory scrutiny, insurance volatility, and lender requirements increase, the cost of fragmented management continues to rise.

Expert Analysis and Practical Guidance for HOA Boards
To help boards move from awareness to action, HOA Start will host a live, expert-led webinar unpacking the most critical findings from the 2026 State of HOA Reserves & Long-Term HOA Financial Planning report—and, more importantly, what HOA boards should do next.

The session will feature Matt Kuisle, a nationally recognized reserve-planning expert at Reserve Advisors, who works directly with HOA boards nationwide on reserve studies, funding strategies, and long-term capital planning.
“Reserve funding has quietly shifted from a ‘best practice’ to a test of governance,” Kuisle shared. “The majority of associations have reserve studies in hand, but far fewer are funding them. That disconnect is no longer benign—today it directly affects insurance availability, financing, and long-term property values.”

What Boards Will Gain from the Session
Rather than simply reviewing statistics, the webinar is designed to give board members clear, actionable guidance they can apply immediately, including:

How to interpret reserve study recommendations in today’s volatile cost environment
How to identify common funding gaps before they trigger special assessments
What reserve metrics boards should be reviewing annually
How stronger systems and governance practices improve long-term financial outcomes

The discussion will connect survey insights directly to real-world board decisions—bridging the gap between reserve studies, budgeting, and ongoing financial management.

Webinar Details:
The 2026 State of HOA Reserves
What the Data Reveals About Your Community’s Financial Future
Wednesday, February 18 at 1:00 PM (ET)
Registration details are available here.

Tim Hickle
HOA Start
+1 317-777-1467
email us here

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