Minnesota does not mandate a formal professional reserve study, but it does mandate reserve funding. Under the Minnesota Common Interest Ownership Act (MCIOA), Minn. Stat. § 515B.3-1141, associations must include in their annual budgets replacement reserves projected by the board to be adequate based on each component's estimated remaining useful life, keep those reserves in accounts separate from operating funds, and reevaluate reserve adequacy at least every third year.
Verified against the statute 2026-07-06
Residential common interest communities governed by MCIOA — all condominiums, cooperatives, and planned communities created on or after June 1, 1994, plus condominiums created under prior chapter 515A (prospectively). Planned communities and cooperatives created before June 1, 1994 fall outside MCIOA unless they elect in, and communities restricted to nonresidential use are exempt.
No formal reserve-study mandate, but the board must reevaluate the adequacy of its budgeted replacement reserves at least every third year (Minn. Stat. § 515B.3-1141); most associations satisfy this with a periodic reserve study.
Annual budgets must include replacement reserves projected by the board to be adequate, based on estimated remaining useful life, for components the association is obligated to replace due to ordinary wear and tear. Reserves must be kept in separate accounts and may not be used or borrowed to cover operating expenses (though they may secure a loan). After declarant control ends, the board plus owners holding 51% of votes may defer reserve assessments for specific components, effective for no more than the current and three following fiscal years, renewable by the same approvals.
MCIOA's resale disclosure certificate (Minn. Stat. § 515B.4-107) must identify the components the association is obligated to replace and disclose the amounts held in replacement reserves for those components, giving buyers direct visibility into reserve funding before purchase.
Applies for association fiscal years commencing on or after January 1, 2012. Requires adequately budgeted replacement reserves for components subject to ordinary wear and tear (components with more than 30 years of remaining life, or funded by other lawful means, are excepted), separate reserve accounts, and reevaluation of adequacy at least every third year. Recently amended (2026 Minn. Laws ch. 61).
The original cumulative-reserve requirement; by its terms it applies only to fiscal years commencing before January 1, 2012, after which § 515B.3-1141 governs.
The resale disclosure certificate must identify the components of the common interest community the association is obligated to replace and state the amounts held in its reserves for replacing those components.
Independently re-verified July 2026 on the official Minnesota Revisor of Statutes site (revisor.mn.gov): § 515B.3-1141 confirmed verbatim — adequate replacement reserves based on estimated remaining useful life, 30-plus-year component exception, separate accounts with no use/borrowing for operating expenses (pledge as loan security allowed), reevaluation 'at least every third year,' board-plus-51%-of-votes deferral capped at the current and three following fiscal years subject to renewal, applicability to fiscal years commencing on or after January 1, 2012, and the 2026 c 61 s 26 amendment notation. § 515B.4-107 confirmed: resale certificate must identify components the association is obligated to replace and the amounts held in reserves for those components. Informational only — not legal advice. Confirm with the primary source and a community-association attorney licensed in Minnesota. Report an issue.
Track percent funded, model funding scenarios, and generate the board-ready report your disclosures need — $49/yr, self-serve.
Explore Reserve Planner