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 — it does, so underfunding may be a compliance issue.
  • Check the remaining life of the roof, elevators, and façade.
  • Note Ohio has no super-lien, so owner delinquencies fall straight onto the budget.
  • Look for a reserve catch-up or a recent special assessment.
  • Check the study's date — an old study understates today's costs.

Sources

Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Ohio-licensed professional.

Related guide

Ohio reserve studies — the full guide →

This page answers what to do right now. For how reserve studies works in Ohio — the law, the process, and what to check before you buy or sell — read the full state guide.

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Sample finding — illustrative
ElevatedSpecial assessment risk

“The board approved a $15,000-per-unit special assessment for façade repairs, payable over 12 months.”

Source: Board meeting minutes, p. 12 — quoted and linked in your report so you can verify it in seconds.

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