Yes. Virginia Code § 55.1-1826 (Property Owners' Association Act) and § 55.1-1965 (Condominium Act) require boards to conduct a reserve study at least once every five years to determine the necessity and amount of reserves for capital components, and to review the results at least annually. There is no minimum funding percentage, but when the study shows reserves are needed, the annual budget must disclose replacement costs, accumulated reserves, and recommended versus actual reserve levels.
Verified against the statute 2026-07-06
Property owners' associations subject to the POA Act (developments with a recorded declaration and mandatory assessments) and condominium unit owners' associations under the Condominium Act; condominium instruments may vary some of the condo-side requirements. Virginia's Real Estate Cooperative Act contains a parallel reserve provision for cooperatives.
At least once every five years, with the results reviewed at least annually to determine whether reserves are sufficient; budgets and assessments are adjusted as needed based on that review.
Virginia sets no minimum reserve funding level or percentage. When the reserve study indicates funding is necessary, the annual budget must include the capital components' current replacement cost and useful life, accumulated reserves and the year's contribution, the estimation method, and recommended reserves compared with cash on hand. Boards retain discretion to meet repair and replacement needs through replacement reserves, additional (special) assessments, or borrowed funds.
Owners receive the reserve figures through the annual budget or budget summary the association distributes. On resale, the Resale Disclosure Act (§ 55.1-2310, effective July 1, 2023) requires the resale certificate to state the amount of reserves for capital expenditures, any project-designated portions, and to include the current reserve study or a summary of it.
Board must conduct a reserve study 'at least once every five years,' review results annually, and include reserve data in the annual budget (replacement cost, useful life, accumulated reserves, contribution amounts, estimation method, recommended vs. current reserves).
Parallel condominium provision: five-year study, annual review, budget disclosures; applies except to the extent the condominium instruments provide otherwise.
Resale certificates must 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 specified projects' and 'the current reserve study or a summary of such study.'
Re-verified Va. Code §§ 55.1-1826 and 55.1-2310 on the official law.lis.virginia.gov site: § 55.1-1826 confirmed verbatim ('at least once every five years' study, annual review, the four budget disclosure items, and board discretion to use reserves, additional assessments, or borrowed funds); § 55.1-2310 (current version as amended through the 2025 session) confirmed to require both the reserve-amount statement and 'the current reserve study or a summary of such study' in resale certificates. § 55.1-1965 is the parallel condominium provision on the same official site. Informational only — not legal advice. Confirm with the primary source and a community-association attorney licensed in Virginia. Report an issue.
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