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.
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.
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.
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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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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.
FAQ
Frequently asked questions
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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.