Massachusetts • Reserve study / underfunding
Is your Massachusetts condo's reserve underfunded — and does the state require funding?
A reserve study can read as reassuring while quietly showing your Massachusetts building is years behind on saving for its roof, elevators, or façade. What matters is how funded the reserves actually are — and what Massachusetts requires.
The short answer
Massachusetts does not require a reserve study and requires the association to fund it. Condos must maintain an 'adequate' replacement reserve (§ 10), but 'adequate' is undefined and owners can vote (67%) to waive it. A pending bill (S.980) would mandate studies for 50+ units. 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 Massachusetts's rules. Free.Massachusetts at a glance
Reserve study
Not required
No state mandate
Reserve funding
Required
Funded to the study
Super-lien
Yes
Six months of regular common-expense assessments (plus costs and reasonable attorney's fees) take priority over the first mortgage
Resale disclosure
Limited
None
What Massachusetts requires
Condos must maintain an 'adequate' replacement reserve (§ 10), but 'adequate' is undefined and owners can vote (67%) to waive it. A pending bill (S.980) would mandate studies for 50+ units. 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
Section 10 expressly permits special assessments for capital work or shortfalls; no statutory cap or frequency limit, and there's no state-mandated disclosure of pending specials at resale. 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
A limited 6-month super-lien covering regular budget assessments only — special assessments, fines, and interest are excluded (M.G.L. c. 183A § 6). On request the association must provide a 6(d) certificate of unpaid assessments within 10 business days; there's no comprehensive statutory resale-disclosure regime, so request budget, reserves, and insurance proactively.
Your rights in Massachusetts
As a Massachusetts owner, your reserve information and any approved special assessments should appear in the association's budget and resale disclosures. 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 Massachusetts mandates reserve funding — it does, so underfunding may be a compliance issue.
- Check the remaining life of the roof, elevators, and façade.
- Remember delinquent-owner debt carries a super-lien in Massachusetts (Six months of regular common-expense assessments (plus costs and reasonable attorney's fees) take priority over the first mortgage), which raises everyone's risk.
- Look for a reserve catch-up or a recent special assessment.
- Check the study's date — an old study understates today's costs.
Sources
- M.G.L. c. 183A § 6 — liens (6-month priority) & 6(d) certificate(High)
- M.G.L. c. 183A § 10 — reserves, assessments, fidelity, insurance powers(High)
- M.G.L. c. 183A § 3 — association insurance of common areas(High)
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Massachusetts-licensed professional.
Related guide
Massachusetts reserve studies — the full guide →This page answers what to do right now. For how reserve studies works in Massachusetts — the law, the process, and what to check before you buy or sell — read the full state guide.
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“The board approved a $15,000-per-unit special assessment for façade repairs, payable over 12 months.”
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