Connecticut • Reserve study / underfunding
Is your Connecticut condo's reserve underfunded — and does the state require funding?
A reserve study can read as reassuring while quietly showing your Connecticut building is years behind on saving for its roof, elevators, or façade. What matters is how funded the reserves actually are — and what Connecticut requires.
The short answer
Connecticut does not require a reserve study and requires the association to fund it. CIOA requires 'adequate reserves' (§ 47-261e) but never quantifies 'adequate' — broad board discretion, disclosed in the budget and resale certificate. A thin reserve is the most common reason a special assessment lands later, so the study-versus-actual-balance gap is the number that matters. CondoSignal reads your reserve study and budget against Connecticut's rules. Free.Connecticut at a glance
Reserve study
Not required
No state mandate
Reserve funding
Required
Funded to the study
Super-lien
Yes
Nine months of common-expense assessments plus reasonable attorney's fees, ahead of the first mortgage
Resale disclosure
Cancellation right
5 business days after the resale certificate (7 if mailed); cancel for any reason (§ 47-270)
What Connecticut requires
CIOA requires 'adequate reserves' (§ 47-261e) but never quantifies 'adequate' — broad board discretion, disclosed in the budget and resale certificate. Whether a thin reserve is merely risky or actually out of compliance depends on that rule — which is the first thing to establish.
Why underfunding becomes an assessment
The 15% safe harbor (§ 47-261e) lets a board impose substantial yearly assessments with no owner input — a real buyer risk in aging buildings. The 'percent funded' figure in the study, compared to the actual reserve balance, tells you how exposed you are.
What it means for collection and resale
One of the strongest super-liens in the Northeast (§ 47-258), raised from six to nine months in 2013. The certificate must disclose the budget, reserves and their basis, approved capital expenditures over $1,000, and insurance.
Your rights in Connecticut
As a Connecticut owner, your reserve information and any approved special assessments should appear in the association's budget and resale disclosures (5 business days after the resale certificate (7 if mailed); cancel for any reason (§ 47-270)). None of this is legal advice — confirm against the current statute and a licensed professional in your state.
What to check
- Find the reserve study's 'percent funded' figure.
- Compare the recommended contribution to what's budgeted.
- Confirm whether Connecticut mandates reserve funding.
- Check the remaining life of the roof, elevators, and façade.
- Look for a reserve catch-up or a recent special assessment.
- Check the study's date — an old study understates today's costs.
Sources
- Conn. Gen. Stat. § 47-258 — lien for assessments (9-month priority)(High)
- Conn. Gen. Stat. § 47-261e — budgets, special assessments, loans(High)
- Conn. Gen. Stat. § 47-270 — resale certificate(High)
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Connecticut-licensed professional.
FAQ
Frequently asked questions
Not sure what your documents are really telling you?
Get a free CondoSignal review of your situation — we read the paperwork against your state's rules and tell you what to do next. No cost, no obligation.