Ohio guide
Ohio reserve studies
Ohio is one of relatively few states with a statutory reserve mandate, but it is a funding mandate, not a study mandate. Under ORC §5311.081 (condos) and §5312.06 (planned communities), the board must adopt an annual budget that includes reserves adequate to repair and replace major capital items in the normal course of operations without the necessity of special assessments.
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What Ohio does not do is require a formal reserve study by an engineer or reserve specialist, define what adequate means, or set a percent-funded target. The mandate also has an easy escape hatch: it does not apply if the declaration limits the board's assessment authority, or if owners waive the requirement in writing by majority vote each year — an annual event since Senate Bill 61 (2022) replaced the older fixed formula. The result is a state that mandates funding on paper but leaves many associations underfunded, which makes reading the actual reserve balance and the waiver history essential.
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What the statute requires
ORC §5311.081 and §5312.06 require the board to budget reserves adequate to repair and replace major capital items without special assessments. SB 61 (2022) modernized the language and removed the older minimum-percentage formula. The mandate is about funding adequacy, not methodology — there is no required study, no prescribed update frequency, and no defined adequate standard. No Ohio case law sets a numeric adequacy benchmark.
The two exceptions, and the annual waiver
The reserve requirement does not apply in two situations: where the declaration or bylaws limit the board's ability to raise common-expense assessments without an owner vote, or where owners waive the requirement in writing by at least a majority of voting power annually. The annual waiver lapses each year and must be re-voted, making it a documentable governance event. Ask whether reserves have been waived and for how many consecutive years — a multi-year waiver is a strong special-assessment warning.
No required study means you read the balance
Because Ohio requires no reserve study, the absence of one is common and not itself a statutory violation — but it is a diligence gap. Without a study, read the reserve balance directly against the building's age and major components: roofs, parking decks, elevators, plumbing, and masonry on 1960s–1990s stock are reaching end-of-life and demand robust reserves. A thin balance against aging components signals imminent assessments.
Where the declaration caps assessment authority
If the declaration limits the board's power to raise assessments without an owner vote, the board may be statutorily excused from full reserve funding under the first exception. That shifts future costs toward special assessments that need owner votes, which can stall and worsen deferral. Read the declaration's assessment-authority provisions alongside the reserve picture to understand how future capital costs are likely to be funded.
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Ohio legal references
- ORC §5311.081 — Condominium board powers; reserve mandate
- ORC §5312.06 — Planned community association powers; reserves
- ORC Chapter 5311 — Ohio Condominium Property Act
Informational only. Not legal advice. Always confirm against current statute and counsel.
Need help applying these Ohio statutes to your specific situation? We can connect you with state-licensed counsel and specialists familiar with this exact regulatory environment.
Find a Ohio specialist →Reviewer's checklist
- Request the current annual budget and the reserve line item
- Confirm whether reserves have been waived and for how many consecutive years
- Ask whether the declaration limits board assessment authority (the first exception)
- Request any reserve study, recognizing none is required in Ohio
- Read the reserve balance against the building's age and major components
- Identify large near-term items — roof, parking deck, elevator, masonry, plumbing
- Review the reserve balance trend over the last several years
- Compare the budgeted reserve contribution to realistic capital needs
- Review the special-assessment history for chronic underfunding
- Read the minutes for any reserve-waiver vote and its documentation
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Critical
Under 10%
Weak
10–30%
Fair
30–70%
Healthy
70%+
- Under 10%:
- Assessment likely imminent
- 10–30%:
- Elevated assessment risk
- 30–70%:
- Common, manageable middle
- 70%+:
- On track to fund replacements
Source documents
- Declaration & bylawsthe rules
- Budget & financialsthe money
- Reserve studythe big repairs
- Meeting minuteswhat the board fears
Cross-reference
The risk lives in the contradiction between documents.
An assessment in the minutes but not the estoppel; a reserve the budget never funds.
Risk report
Severity-graded across 8 categories.
Every finding cites the document, page number, and quoted text.
How CondoSignal reviews this
We read the reserve study, operating budget, and 24 months of meeting minutes together — ohio reserve studies risk usually lives in the contradiction between documents, not in any single one of them. Every finding cites the source document, the page number, and the quoted text behind it.
See our 8-category framework →Risk Intelligence
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- Reserve fund engineer
- Property manager
- Building envelope consultant
- Restoration contractor
Related risk areas
Read these next to round out your due diligence
Special assessments
Special assessments are the single largest source of financial surprise in condo and HOA ownership.
Condo document review
A condo document review is the structured analysis of every disclosure document your seller or association has provided — declaration, bylaws, rules, reserve study, budgets, financials, meeting minutes, insurance summary, estoppel or resale certificate, and any pending special assessment notices.
Governance risk
An association's governance health is a leading indicator of every other risk.
Related reading
Guides for Ohio buyers and owners
Ohio's Condo Reserve Law: The Annual Waiver Loophole and the Special-Assessment Trap
Ohio mandates reserve funding under ORC §5311.081 and §5312.06 — but lets owners waive it by majority vote every year and requires no reserve study. Here is why that loophole drives surprise special assessments, and what to check before you buy.
How to Read a Reserve Study Before Buying: Is the Funding a Red Flag?
Reserve studies are dense engineering-financial documents. Learn what percent funded and baseline funding mean, how to spot unfunded repairs, and when the numbers are a special-assessment red flag — before you buy.
Special Assessment Red Flags: How to Spot One Before You Buy
A special assessment rarely arrives without warning. The clues show up in the reserve study, budget, and meeting minutes months before the vote — here are the red flags to check before you buy.
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Owner guides for the notice you just got
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Reviewed by Kirk Hasley, Founder. Every claim here is checked against current Ohio statute and primary sources, using the same documented review framework we run on every file. Last reviewed June 13, 2026.
FAQ
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What a finding looks like
Every finding cites the exact page in your documents
“The board approved a $15,000-per-unit special assessment for façade repairs, payable over 12 months.”
Source: Board meeting minutes, p. 12 — quoted and linked in your report so you can verify it in seconds.
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Risk Intelligence
Review the documents before your contingency ends
Most buyers get 7–14 days to review condo documents. Upload the packet — we read the reserve study, budget, minutes, and insurance summary and flag the risks, every finding linked to the exact page. Free.
Expert Matching
Need a real estate lawyer or mortgage specialist?
We can connect you with vetted real estate lawyers, mortgage brokers, and insurance brokers familiar with the specifics of condo and HOA transactions.
- Reserve fund engineer
- Property manager
- Building envelope consultant
- Restoration contractor