Michigan does not require reserve studies, and its reserve-funding rule reaches only condominiums. The Michigan Condominium Act (MCL 559.205) requires every association of co-owners to maintain a reserve fund for major repairs and replacement of common elements, and Michigan Administrative Rule R 559.511 sets the floor at 10% of the association's current annual budget on a noncumulative basis. Homeowners associations outside the Condominium Act face no statutory reserve requirement at all.
Verified against the statute 2026-07-06
Condominium projects governed by the Michigan Condominium Act (Act 59 of 1978), which in Michigan includes many site-condominium subdivisions. Traditional platted-subdivision HOAs are not subject to any statutory reserve requirement, though their governing documents may impose one.
No statutory reserve-study requirement or cycle. Admin Rule R 559.511 requires condo bylaws to warn that the 10% minimum may prove inadequate and that the association should analyze whether a greater amount is needed; bills proposing condo reserve-study mandates (e.g., HB 5019 of 2023) had not been enacted as of mid-2026.
Condominium associations must maintain a reserve fund of at least 10% of the current annual budget, on a noncumulative basis, usable only for major repairs and replacement of common elements (MCL 559.205 plus Admin Rule R 559.511). The required amount must be set aside by the transitional control date, with the developer liable for any deficiency at that date. The 10% figure is a regulatory floor, not a sufficiency standard.
There is no reserve-study or buyer-specific reserve disclosure statute. Admin Rule R 559.511 instead pushes disclosure into the governing documents: condominium bylaws must state the reserve requirement and include the prescribed warning that the minimum standard may prove inadequate and that the association should analyze whether more should be set aside; association books and records, including budgets, remain open to co-owners under the Condominium Act.
Mandates that associations of co-owners maintain a reserve fund for major repairs and replacement of common elements, and authorizes the administrator to establish minimum standards by rule — the 10%-of-annual-budget noncumulative minimum, use restrictions, and required bylaws warning appear in Mich. Admin. Code R 559.511, adopted under this delegation.
Independently re-verified July 2026: MCL 559.205 confirmed on the official Michigan Legislature site (legislature.mi.gov) — 'A reserve fund for major repairs and replacement of common elements shall be maintained by the associations of co-owners' and 'The administrator may by rule establish minimum standards for reserve funds' (the 10% figure is not in the statute itself, consistent with this entry's attribution to the rule). Admin Rule R 559.511's text — 10% of the current annual budget on a noncumulative basis, use limited to major repairs and replacement of common elements, set-aside by the transitional control date with developer liability for any deficiency, and the prescribed bylaws inadequacy warning — was confirmed from the rule text as republished by Cornell LII, not from a state-run administrative-code URL. Corrected a bill citation: the unenacted reserve-study bill is HB 5019 of 2023 (2023–2024 session), not 2025. Informational only — not legal advice. Confirm with the primary source and a community-association attorney licensed in Michigan. Report an issue.
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