Connecticut guide
Connecticut reserve studies
Connecticut requires associations to maintain adequate reserves and to disclose how they are calculated, but it does not define 'adequate' or impose a universal periodic reserve-study mandate. Under CIOA §47-261e, the proposed budget summary must state the reserve amount and the basis on which reserves are calculated and funded, and reserves must be accounted for separately from operating funds.
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A professional reserve study is required only for new associations at formation, not broadly for existing ones. The result is substantial board discretion — which makes reading the disclosed reserve balance and the basis of calculation against the building's age and major components the most important part of a Connecticut reserve review.
What CIOA requires
Under §47-261e, the budget summary owners receive must disclose the amount of reserves for capital expenditures and the basis on which reserves are calculated and funded. Reserve funds must be kept separate from operating funds. The resale certificate (§47-270) carries the same reserve disclosure to buyers. What CIOA does not do is set a minimum percent funded, prescribe a funding formula, or require existing associations to commission a periodic professional study.
Reading the 'basis of calculation'
Because there is no statutory funding target, the disclosed basis of calculation is your best window into reserve quality. A basis grounded in a professional reserve study with a component inventory and replacement schedule is far stronger than a flat dollar figure set by past practice. A vague or absent basis suggests reserves were set by guesswork. Where a study exists, request it even though it is not universally mandated.
Major components and the foundation question
Confirm the reserve plan accounts for the building's real components: roofs, siding, decks, elevators, garages, and envelope. In freeze-thaw and coastal climates these wear faster. Critically, in the pyrrhotite-affected region, foundation replacement — a six-figure-per-building cost — should be contemplated; its absence from the reserve plan understates true need and is a catastrophic exposure. Read the reserve disclosure against the component list and the building's location.
Funding trend and assessment risk
Read the reserve balance trend and the budget contribution over recent years. A flat or declining contribution while components age is a classic deferred-maintenance pattern, and under §47-261e a board can fill the gap with special assessments up to 15% of the budget per year without an owner vote. The reserve picture and the special-assessment history together are the clearest predictors of out-of-pocket exposure.
Connecticut legal references
- Conn. Gen. Stat. §47-261e — Budget summary, reserves, basis of calculation
- Conn. Gen. Stat. §47-264 — Disclosure contents (reserves, capital expenditures)
- Conn. Gen. Stat. §47-270 — Reserve disclosure in the resale certificate
Informational only. Not legal advice. Always confirm against current statute and counsel.
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Find a Connecticut specialist →Reviewer's checklist
- Read the disclosed reserve amount and the basis of calculation (§47-261e/§47-264)
- Confirm reserves are accounted for separately from operating funds
- Request any professional reserve study, even though existing associations need not commission one
- Confirm the reserve plan covers roofs, siding, decks, elevators, and garages
- In the affected region, confirm foundation replacement is contemplated in reserves
- Review the reserve balance trend and budget contribution over recent years
- Compare the reserve picture against the building's age and deferred maintenance
- Check the minutes for reserve-funding or special-assessment discussion
- Ask whether reserves are earmarked against any known repair or claim
- For new associations, confirm a formation-stage reserve study was prepared
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We can introduce your board to vetted reserve fund engineers, HOA lawyers, property managers, building envelope consultants, and restoration contractors — free intros, no obligation.
- Reserve fund engineer
- Property manager
- Building envelope consultant
- Restoration contractor
Risk Intelligence
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Reserve studies, audit findings, attorney memos, milestone inspections — CondoSignal produces a free, structured review with page citations your board can act on. No cost to the association.