Best Practices Report: Reserve Funding

RESERVE FUNDING

SUMMARY Regulatory requirements, lending standards, and insurance expectations increasingly influence how associations establish their reserve funding plans. Reserve studies must now do more than project capital needs—they must support financial trans- parency, demonstrate compliance with evolving lending standards, and position the community to maintain access to mortgage financing. These external factors should be considered during reserve study preparation and updates to ensure funding strategies support long-term asset sustainability, regulatory compliance, and contin- ued marketability.

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