Is 30% funded bad for a reserve study?

It's on the weak side. Below roughly 30% funded, the likelihood of a special assessment rises notably, and below 10% is a strong warning sign. It isn't an automatic crisis — the trend and the remaining life of major components matter — but it's a number worth understanding before you buy, sell, or vote on a budget.

Where do I find percent funded in the report?

It's usually in an executive summary table in the first few pages, sometimes labeled 'percent funded' or 'funding level.' If you can't find it, the study should show the actual reserve balance and the fully funded balance — percent funded is the first divided by the second.

Can a fully funded reserve still have a special assessment?

Yes. Reserve studies cover predictable component replacement, not surprises — a sudden structural failure, an uninsured loss, or a new legal mandate can trigger an assessment even with healthy reserves. A high percent funded lowers the odds and the size, but it isn't a guarantee.

Owner guide

What does 'percent funded' mean on a reserve study?

A reserve study can run dozens of pages, but most of what an owner needs is one figure buried in a table: percent funded. It's the clearest signal of whether your building is quietly heading toward a special assessment — and it's routinely overlooked because the report doesn't flag it for you.

The short answer

'Percent funded' is the single number that tells you how prepared your condo is for its big repairs: it's what the reserves have saved divided by what they should have saved by now. Below roughly 30% is widely considered weak, and the lower it is, the more likely a special assessment is when something major fails.

What the number actually measures

Percent funded compares the reserve fund's actual balance to its 'fully funded balance' — the amount that should be saved by now given each component's age and replacement cost. At 100%, reserves are exactly on track. At 50%, the fund is halfway to where it should be. It is a snapshot of preparedness, not a measure of whether the building has 'enough cash' in any absolute sense.

Where the line is

There's no universal threshold, but the widely used rule of thumb is that below about 30% funded, the risk of a special assessment rises sharply, and below 10% is a serious warning. Between 30% and 70% is a common, manageable middle. Just as important as the level is the trend: a fund climbing from 25% to 40% over three studies is healthier than one sliding from 60% to 45%.

Why a low number turns into a bill

When reserves are thin and a roof, elevator, or façade reaches the end of its life, the money has to come from somewhere — almost always a special assessment or a loan repaid through higher dues. Associations often keep dues low for years, which feels fine until a major component fails and the shortfall lands on current owners all at once.

What to check

Find the 'percent funded' figure — usually in a summary table near the front.
Check the study's date; an old study understates today's replacement costs.
Compare the recommended annual contribution to what the budget actually funds.
Look at the remaining life of the roof, elevators, and building envelope.
Ask for the last two or three studies to see the trend, not just the level.

Dealing with this right now?

If this is more than a paperwork question, here's the front door for it:

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