Conditionally — the mandate reaches condominiums and cooperatives, not typical HOAs. Under the Delaware Uniform Common Interest Ownership Act, 25 Del. C. § 81-315, a condominium or cooperative budget must include a repair-and-replacement reserve line item sufficient to achieve the funding level in a current reserve study, defined at § 81-103 as an independent professional analysis performed or updated within the last 5 years. If there is no current study, statutory minimums of 15%, 10%, or 5% of the annual budget apply based on how many major systems the association maintains; planned-community HOAs are not subject to this reserve line-item requirement.
Verified against the statute 2026-07-06
The reserve budgeting mandate in § 81-315 applies to condominiums and cooperatives under DUCIOA, including communities created before the Act's September 30, 2009 effective date (via § 81-119). Planned-community HOAs are not covered by the reserve line-item requirement, and small or limited-expense communities enjoy partial exemptions under DUCIOA's applicability provisions.
No fixed board cadence is stated, but to count as a 'reserve study' under § 81-103(40) the analysis must have been performed or updated within the last 5 years by one or more independent engineers, architects, construction contractors, or other qualified persons — effectively a 5-year refresh cycle for condos and co-ops that budget from a study.
A condominium or cooperative budget must include a repair-and-replacement reserve line item sufficient to achieve (or maintain) the funding level identified in the current reserve study. If the association lacks a current study, statutory floor percentages of the annual budget apply: 15% when the board maintains four or more of the listed major systems/components, 10% for exactly three, and 5% for two or fewer. Planned communities face no equivalent statutory reserve funding floor.
Resale certificates under 25 Del. C. § 81-409 — which also applies to preexisting communities per § 81-119 — must disclose the amount of the association's reserves for capital expenditures, and public offering statements for new communities include the budget reflecting the reserve line item. Owners see reserve funding through the annual budget process that § 81-315 governs.
Condominium and cooperative budgets must include a reserve payment 'sufficient to achieve the level of funding noted in the reserve study'; absent a current reserve study, minimums apply — 15% of the annual budget if the board maintains 4+ listed systems/components (roofs, elevators, HVAC, pools, parking garages, etc.), 10% for exactly 3, and 5% for 2 or fewer.
A reserve study is 'an analysis, by 1 or more independent engineering, architectural, or construction contractors or other qualified persons, performed or updated within the last 5 years, of the remaining useful life and estimated cost to replace each separate system and component.'
Enumerates the DUCIOA sections — including § 81-315 (reserves) and § 81-409 (resale certificates) — that apply to common interest communities created before the Act's September 30, 2009 effective date.
Re-verified on the official delcode.delaware.gov site (Title 25, Ch. 81, Subchapters I and III): § 81-315 confirmed verbatim (reserve line item 'sufficient to achieve the level of funding noted in the reserve study' and the 15%/10%/5% defaults keyed to 4+/3/2-or-fewer maintained systems, applicable to condominiums and cooperatives only); § 81-103 paragraph (40) confirmed as the 5-year independent-professional reserve study definition; § 81-119's enumerated list confirmed to include §§ 81-315 and 81-409, extending both to preexisting communities. Informational only — not legal advice. Confirm with the primary source and a community-association attorney licensed in Delaware. Report an issue.
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