Indiana HOA Reserve Fund Requirements (2025 Guide)

Indiana HOA and Condo Reserve Study Requirements: Overview

In Indiana, reserve studies are not legally mandated but are highly recommended to ensure the long-term financial health of communities. Here’s why reserve studies matter:

• Best Practices: Reserve studies help Indiana associations plan for future maintenance needs and financial stability.
• Financial Stability: A clear funding strategy minimizes the risk of sudden fee hikes or special assessments.
• Transparency: Sharing reserve study findings builds trust and fosters accountability among homeowners.
• Property Value Protection: Properly maintained assets help preserve and enhance property values in the community.

Benefits of Conducting Reserve Studies

Even without a legal requirement, reserve studies provide numerous benefits for Indiana communities:

1. Proactive Maintenance: Plan for major repairs and replacements, reducing financial surprises and ensuring timely upkeep.
2. Increased Community Trust: Transparent financial planning reassures homeowners and strengthens community relationships.
3. Preserved Property Values: Keeping community assets well-maintained helps attract potential buyers and maintains property values.

Step-by-Step Guide to Conducting a Reserve Study

Conducting a reserve study can be simplified into manageable steps to ensure accuracy and effectiveness. Here’s how:

Hire a Certified Reserve Study Professional

Use PropFusion’s Network to find qualified reserve study specialists who understand the unique needs of Indiana communities.

Compile an Asset Inventory

List all common assets, such as roofs, HVAC systems, and recreational facilities, requiring maintenance or replacement.

Assess Asset Conditions and Lifespans

Evaluate the current condition and projected lifespan of each asset to plan effectively for future repair and replacement costs.

Develop a Funding Plan

Create a financial strategy to maintain reserve fund levels covering 70-100% of anticipated costs, reducing reliance on special assessments.

Communicate Findings to Homeowners

Share the reserve study results with homeowners to explain the financial outlook and future plans, fostering transparency and trust.

Update Regularly

While Indiana has no legal requirement, it’s recommended to revisit reserve studies every 3–5 years to adapt to changing conditions and costs.