State profile
New York
New York has no statute requiring reserve studies or minimum reserve funding for condominiums, co-ops, or HOAs. The Condominium Act treats reserves as an optional bylaw subject, not a mandate. The exception is New York City conversions: sponsors must establish a reserve fund of roughly 3% of the offering price at closing, reserved for capital repairs. A pending bill (S7600) would mandate capital reserve studies with 30-year funding plans statewide — it has not passed. In practice, Fannie Mae/Freddie Mac project eligibility is the binding reserve standard for most buildings.
Update every
Not required
Site visit
Not required
Applies to
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What your board must do
01Treat reserves as governed by your bylaws — the Condominium Act lists reserve provisions among what bylaws may include, not must (RPL §339-v(2)(b)).
02For NYC conversions, the sponsor must establish and transfer a reserve fund — generally 3% of the total offering price, minimum 1% — within 30 days of closing, used exclusively for capital repairs, replacements and improvements (NYC Admin. Code §26-703; AG compliance guidance, 2015).
03Watch S7600/A8945 (2025–26 session), which would require capital reserve studies with 30-year funding plans filed with the Attorney General. In committee as of September 2026.
04Note that for condos and co-ops, Fannie Mae/Freddie Mac project eligibility — not New York law — is the binding reserve constraint for most buyers' loans.
Quick answers
- Does New York require a reserve study?
- No statute. No statute requires one. New York has no statute requiring reserve studies or minimum reserve funding for condominiums, co-ops, or HOAs. The Condominium Act treats reserves as an optional bylaw subject, not a mandate. The exception is New York City conversions: sponsors must establish a reserve fund of roughly 3% of the offering price at closing, reserved for capital repairs. A pending bill (S7600) would mandate capital reserve studies with 30-year funding plans statewide — it has not passed. In practice, Fannie Mae/Freddie Mac project eligibility is the binding reserve standard for most buildings.
- How often must a New York reserve study be updated?
- Update interval: Not required. Site visit: Not required.
- What must a New York association disclose about reserves?
- None statewide; NYC conversion fund rules.
Statutes
Last statutory change — · Page reviewed Sep 2026 · Not legal advice