State profile
Delaware
Delaware mandates reserve funding, not a reserve study. A condominium or cooperative budget must include a line item funding the repair and replacement reserve to the level in the association's reserve study — and a study only counts if performed or updated within the last five years by independent qualified professionals. Without a current study, fallback minimums apply: 15%, 10%, or 5% of the annual budget depending on how many major building systems the board maintains. Declarations recorded since late 2009 must mandate a fully funded, study-based reserve, but the statute never directly orders anyone to commission a study — and planned communities and HOAs have no reserve duty at all.
Update every
No fixed cycle
Site visit
Not required
Applies to
Condos & co-ops only; HOAs exempt
What your board must do
01Include in every condo or co-op budget a line item funding the repair and replacement reserve to the level in the reserve study, or maintaining it there (25 Del. C. §81-315(a)(2)). A "reserve study" means an analysis by one or more independent engineering, architectural, or construction contractors or other qualified persons, performed or updated within the last 5 years (§81-103(40)) — an older study does not count as one.
02Without a current study, assign the fallback minimum to reserves — 15% of the annual budget if the board maintains 4 or more of the 15 enumerated systems (roofs, windows, exterior walls, elevators, HVAC, hallways, stairwells, pools, clubhouses, parking garages, and others), 10% for exactly 3, and 5% for 2 or fewer (§81-315(a)(2)).
03If the declaration was recorded after September 30, 2009, it must contain provisions mandating a fully funded, study-based repair and replacement reserve (§81-205(a)(14)) — the chapter's only study "requirement," and it binds through the governing documents rather than ordering the association to commission one.
04Use the reserve solely for repair and replacement of common elements (§81-103(39)), and refund or credit to owners any accountant-certified surplus above the fully funded level (§81-315(a)(2)).
05Send owners a budget summary within 30 days of adoption, including reserves and the basis on which they are calculated and funded — the budget stands unless a majority of all owners votes to reject it (§81-324(a)). Keep the most recent study on file (§81-318(a)) and include the current reserve balance and a copy of the most recent study in every resale certificate (§81-409(a)).
06Know the scope — every reserve provision is expressly limited to condominiums and cooperatives; planned communities and HOAs owe nothing to reserves. §81-119 extends the funding duty to pre-2009 condos and co-ops, though expressly conflicting declaration provisions control and communities of 20 or fewer units (or minimal assessments) are largely exempt (§§81-117, 81-118, 81-120). There are no penalties; the remedy is a civil claim with possible attorney fees (§81-417).
Quick answers
- Does Delaware require a reserve study?
- Disclosure only. Not a full study — disclosure only. Delaware mandates reserve funding, not a reserve study. A condominium or cooperative budget must include a line item funding the repair and replacement reserve to the level in the association's reserve study — and a study only counts if performed or updated within the last five years by independent qualified professionals. Without a current study, fallback minimums apply: 15%, 10%, or 5% of the annual budget depending on how many major building systems the board maintains. Declarations recorded since late 2009 must mandate a fully funded, study-based reserve, but the statute never directly orders anyone to commission a study — and planned communities and HOAs have no reserve duty at all.
- How often must a Delaware reserve study be updated?
- Update interval: No fixed cycle. Site visit: Not required.
- What must a Delaware association disclose about reserves?
- Budget summary + resale certificate. Applies to: Condos & co-ops only; HOAs exempt.
Statutes
25 Del. C. §81-315(a)(2)Reserve funding line item and the 15/10/5% fallbacks25 Del. C. §81-103(23), (39), (40)Definitions — fully funded, reserve, 5-year study currency25 Del. C. §81-205(a)(14)Post-2009 declarations must mandate a study-based reserve25 Del. C. §81-119Application of §81-315 to pre-2009 communities
Last statutory change 2009 · Page reviewed Sep 2026 · Not legal advice