brown wooden door with brass door knob We frequently get the question of how much does WUCOIA require an association to put into reserves? The requirement of how much should be put into reserves is not explicitly stated in the Washington State Revised Code (RCW) 64.34, which governs condominiums, HOA’s and PUDs.
However, the following provisions within RCW 64.34 strongly imply this requirement:
  • RCW 64.34.380: This section encourages the establishment of a reserve account to fund major maintenance, repair, and replacement of common elements.
  • Reserve Study Requirement: RCW 64.34 mandates reserve studies for most condominium associations. These studies are intended to assess future capital needs and guide the association in establishing appropriate reserve funding levels.
  • Fiduciary Duty of the Board: The board of directors of a condominium association has a fiduciary duty to act in the best interests of the association and its unit owners. This includes responsible financial management, which inherently involves maintaining adequate reserves to address foreseeable expenses.
While not explicitly stated, the overall intent and purpose of RCW 64.34 strongly suggest that maintaining adequate reserves to minimize the need for special assessments is a key objective for condominium associations. We believe that in the original bill that there was a reserve funding requirement but it was removed and left up to the association boards to manage.