No — New Mexico does not mandate reserve studies or minimum reserve funding for HOAs or condominiums. The Homeowner Association Act (NMSA 1978, §§ 47-16-1 et seq., effective July 1, 2013) instead requires reserve disclosure: the disclosure certificate furnished when a lot sells must state the amount of any reserves for capital expenditures, and members may inspect financial records including amounts held in reserve. The Condominium Act's resale certificate (NMSA § 47-7D-9) carries a similar reserves statement, with no study or funding mandate in either act.
Verified against the statute 2026-07-06
The Homeowner Association Act applies to homeowner associations statewide (a few sections apply only to associations created on or after July 1, 2013) and expressly does not apply to condominiums, which are governed by the separate Condominium Act with parallel resale-certificate disclosure. Both regimes address reserves only through disclosure, not funding.
No statutory cycle — New Mexico law never requires a reserve study to be performed or updated.
No statutory minimum or contribution formula. The board must adopt a budget annually and provide a summary to all lot owners (NMSA § 47-16-7), but whether and how much to reserve is left to the board's discretion under its statutory duty of care.
Before closing on the sale of a lot, the buyer must receive a disclosure certificate from the association that states the amount of any reserves for capital expenditures and any portions designated for approved projects (defined in NMSA § 47-16-2 and required by the Act's sale-of-lots provisions). Members may also inspect financial statements and accounts, including amounts held in reserve, at no charge for review (NMSA § 47-16-5).
Defines the 'disclosure certificate' to include 'a statement of the amount of any reserves for capital expenditures and of any portions of those reserves designated by the association for any approved projects' (enacted as 2013 SB 497; text confirmed verbatim from the final bill on nmlegis.gov).
Members are entitled to review association records including 'financial statements and accounts, including amounts held in reserve,' within ten business days of a request and at no charge for review.
Condominium resale certificate includes 'a statement of the amount of any reserves for capital expenditures'; text corroborated via the current Justia codification — the official NM Compilation Commission source (nmonesource.com) blocks automated fetches, so the exact official text could not be machine-confirmed.
Extracted the enacted 2013 SB 497 (Homeowner Association Act) from nmlegis.gov (official) and confirmed verbatim: the disclosure-certificate reserves statement, member access to 'financial statements and accounts, including amounts held in reserve,' the ten-business-day certificate deadline, the condominium exclusion (Section 15.D), the July 1, 2013 effective date, and that Sections 9, 10 and 14 apply only to associations created on or after July 1, 2013. Corrected an earlier copy-fee claim ('ten cents per page') to the statute's actual 'reasonable fee for copies' language. The Condominium Act cite (§ 47-7D-9) is corroborated by the current Justia codification; the official nmonesource.com PDF could not be machine-fetched. Informational only — not legal advice. Confirm with the primary source and a community-association attorney licensed in New Mexico. Report an issue.
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