Texas Reserve Study Requirements

Encouraged / disclosure

No. Texas does not require HOAs or condominium associations to conduct reserve studies, and no statute sets a minimum reserve funding level. The Texas Uniform Condominium Act (Property Code Chapter 82) authorizes boards to budget for reserves and requires the amount of reserves to be disclosed in resale certificates (Prop. Code §§ 82.102, 82.157), and subdivision HOAs must make the same reserve disclosure under Prop. Code § 207.003 — but a reserve study itself is never mandated.

Verified against the statute 2026-07-06

Who it applies to

The disclosure and budgeting provisions cover both condominiums under the Uniform Condominium Act (Chapter 82, generally condos created on or after January 1, 1994) and single-family subdivision HOAs, whose resale certificates are governed by Chapter 207. Neither class of association faces a reserve study or minimum funding mandate.

Study cycle

No statutory cycle — Texas law never requires a reserve study; any cadence comes from an association's own governing documents.

Funding rules

No statutory minimum or funding formula. Prop. Code § 82.112(f) lets a condo declaration allow accumulation of reserve funds for an unspecified period, and § 82.112(a) prohibits spending reserves on operational expenses while the declarant controls the association. The 89th Legislature (2025) passed transparency updates (SB 711, effective September 1, 2025) but no reserve mandate.

Disclosure rules

Reserve balances must be disclosed to buyers: condo resale certificates must state the amount of reserves for capital expenditures and any project-designated portions (§ 82.157(a)(5)), and subdivision HOA resale certificates must do the same along with the operating budget and balance sheet (§ 207.003(b)). A declarant's condominium information statement budget must also state the amount included as a reserve, or that none is included.

The statutes

Confirmed §§ 82.102(a)(2), 82.112(a) and (f), 82.157(a)(5), and 207.003(b)(6)-(7) verbatim from the official Texas Legislative Council statute files (statutes.capitol.texas.gov, content served from tcss.legis.texas.gov); also confirmed 89R SB 711 (eff. Sept. 1, 2025) is a transparency measure — online governing documents and management-certificate disclosures — with no reserve provisions. Informational only — not legal advice. Confirm with the primary source and a community-association attorney licensed in Texas. Report an issue.

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