State profile
Virginia
Virginia has required boards to conduct a reserve study at least once every five years since 2002 — for both condominiums and property owners' associations — with an annual review of the results and budget adjustments as needed. The statute sets no preparer requirement: a board may do the study itself or hire a professional. A 2024 law added a statutory definition of "reserve study," made the POA duties non-waivable, gave boards express authority to fund repairs through reserves, additional assessments, or borrowing, and repealed the owners' former power to vote down a board-levied additional assessment.
Update every
5 yrs
Site visit
Not required
Applies to
Condos & POAs (condo docs may vary the duty)
What your board must do
01Conduct a study at least once every five years "to determine the necessity and amount of reserves required to repair, replace, and restore the capital components" (Va. Code §55.1-1965(B)(1) for condos; §55.1-1826(B)(1) for POAs). Since July 2024 "reserve study" is statutorily defined as a capital budget planning tool covering physical status, cost, and funding capacity (§55.1-1900, §55.1-1800).
02Review the study's results at least annually to determine if reserves are sufficient, and make any adjustments to the annual budget and annual assessment the board deems necessary to maintain reserves (subsections (B)(2)-(3) of both sections).
03When the study indicates a need to budget for reserves, include in the budget the estimated replacement cost, remaining life, and useful life of each capital component, the accumulated reserves and expected contribution for the year, a statement of the estimation procedures used, and the study's recommended reserve amount beside actual cash on hand (subsection (C) of both sections).
04Choose your preparer freely — the statute imposes no professional, credential, or independence requirement, and the CIC Board's 2019 advisory guidelines expressly permit the board to produce the physical or financial analysis in-house, hire professionals, or split the work (guidelines adopted Sept. 5, 2019; non-binding).
05Know which rules bind you — since July 1, 2024 the POA duties apply regardless of what the declaration says (HB 1209 removed the override), while condo duties still yield to contrary provisions in the condominium instruments (§55.1-1965(A)-(B)).
06Fund repair and replacement through replacement reserves, additional assessments, or borrowed funds at the board's discretion (subsection (D) of both sections) — and note that owners can no longer vote to rescind or reduce a board-levied additional assessment; HB 1209 repealed that mechanism in both acts (former §55.1-1964(E), §55.1-1825(A)).
Quick answers
- Does Virginia require a reserve study?
- Reserve study required. Yes. Virginia has required boards to conduct a reserve study at least once every five years since 2002 — for both condominiums and property owners' associations — with an annual review of the results and budget adjustments as needed. The statute sets no preparer requirement: a board may do the study itself or hire a professional. A 2024 law added a statutory definition of "reserve study," made the POA duties non-waivable, gave boards express authority to fund repairs through reserves, additional assessments, or borrowing, and repealed the owners' former power to vote down a board-levied additional assessment.
- How often must a Virginia reserve study be updated?
- Update interval: 5 yrs. Site visit: Not required.
- What must a Virginia association disclose about reserves?
- Reserve balances + study recommendation in budget. Applies to: Condos & POAs (condo docs may vary the duty).
Statutes
Last statutory change Jul 2024 · Page reviewed Sep 2026 · Not legal advice