Ohio • Reserve study / underfunding
Is your Ohio condo's reserve underfunded — and does the state require funding?
A reserve study can read as reassuring while quietly showing your Ohio building is years behind on saving for its roof, elevators, or façade. What matters is how funded the reserves actually are — and what Ohio requires.
The short answer
Ohio does not require a reserve study and requires the association to fund it. Reserves must be 'adequate to repair major items without special assessments' (§ 5311.081) — but owners can waive that funding annually by majority vote, and 'adequate' has no numeric target. 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 Ohio's rules. Free.Ohio at a glance
Reserve study
Not required
No state mandate
Reserve funding
Required
Funded to the study
Super-lien
None
None — a first mortgage recorded before the association's lien certificate has priority
Resale disclosure
Cancellation right
3 business days after the state Residential Property Disclosure Form, or 30 days after signing (§ 5302.30)
What Ohio requires
Reserves must be 'adequate to repair major items without special assessments' (§ 5311.081) — but owners can waive that funding annually by majority vote, and 'adequate' has no numeric target. 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
No statutory cap. Fine-type assessments require 10-day notice and a hearing (§ 5311.081(C)); the annual reserve-waiver loophole is the main driver of surprise specials. 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
Ohio is not a super-lien state (ORC § 5311.18); repeated bills to add a 6-month priority have failed for over a decade. Ohio has no statutory HOA resale certificate; request the budget, reserves, insurance, and special-assessment history directly.
Your rights in Ohio
As a Ohio owner, your reserve information and any approved special assessments should appear in the association's budget and resale disclosures (3 business days after the state residential property disclosure form, or 30 days after signing (§ 5302.30)). 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 Ohio 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
- ORC § 5311.081 — board duties; reserves; fine procedure(High)
- ORC § 5311.16 — condominium insurance (90% replacement)(High)
- ORC § 5311.18 — lien for common expenses (no super-lien)(High)
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Ohio-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.