Kentucky HOA Reserve Fund Requirements (2025 Guide)

Kentucky HOA and Condo Reserve Study Requirements: Overview

In Kentucky, reserve studies are not legally mandated but are a valuable tool for effective financial management and long-term planning. Here’s why reserve studies matter:

• Best Practices: Reserve studies help Kentucky associations prepare for future maintenance needs and establish sound financial strategies.
• Financial Stability: A clear funding plan reduces the risk of unexpected fee increases or special assessments.
• Transparency: Sharing reserve study findings fosters trust and accountability within the community.
• Property Value Protection: Maintaining community assets helps preserve and enhance property values.

Benefits of Conducting Reserve Studies

Although not legally required, reserve studies provide numerous benefits for Kentucky communities:

1. Proactive Maintenance: Plan for major repairs and replacements, reducing unexpected financial burdens and ensuring timely upkeep.
2. Increased Community Trust: Transparent financial planning reassures homeowners and strengthens community relationships.
3. Preserved Property Values: Maintaining community assets ensures neighborhoods remain attractive to potential buyers.

Step-by-Step Guide to Conducting a Reserve Study

Conducting a reserve study can be streamlined into manageable steps for accuracy and effectiveness. Here’s how:

Hire a Certified Reserve Study Professional

Use PropFusion’s Network to connect with experienced reserve study specialists who understand the unique needs of Kentucky communities.

Compile an Asset Inventory

List all common assets, such as roofing, plumbing, and recreational facilities, requiring maintenance or replacement.

Assess Asset Conditions and Lifespans

Evaluate the current condition and expected 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, minimizing 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 Kentucky has no legal requirement, it’s recommended to revisit reserve studies every 3–5 years to adapt to changing financial and maintenance needs.