Does Washington State Law Require a Reserve Study for HOAs?

This is historically a common question raised by HOA boards in Washington State! Many condominium associations are familiar with this practice, but for many Single-Family HOAs we interact with, a Reserve Study is a new concept – and rightfully so as requirements and laws are changing.

Short answer: Usually yes — if your HOA has “significant assets.” Washington law requires associations that maintain meaningful shared assets to prepare and regularly update a reserve study, unless a statutory exemption applies. Also note that the state is moving all community-association law into the Washington Uniform Common Interest Ownership Act (WUCIOA, Chapter 64.90 RCW), which becomes the controlling law for all pre-existing associations on January 1, 2028.

Dive into the details!

Under the current HOA statute (Chapter RCW 64.38) and the Condominium Act (RCW 64.34), an association with significant assets must prepare and update a reserve study, unless doing so would create an “unreasonable hardship.” The initial study must be based on a visual site inspection by a reserve-study professional, updates are required annually, and a full visual re-inspection is required at least every three years.

RCW 64.38 lists common exemptions: an association is not required to follow the reserve-study rules if (a) the cost of the reserve study would exceed 5% of the association’s annual budget, (b) the association does not have significant assets, or (c) there are ten or fewer homes in the association, unless RCW 64.90 later applies to the community. Boards should be cautious relying on exemptions; if you’re borderline, get legal advice.

Starting January 1, 2028, WUCIOA (RCW 64.90) will be the default law for virtually all common-interest communities in Washington. RCW 64.90.545 requires associations (unless exempt) to prepare and update a reserve study and spells out the same basic duties: initial reserve study by a reserve-study professional, periodic updates, and inspection requirements. In short: WUCIOA largely harmonizes and extends Reserve Study obligations across different types of associations.

Recommended Next Steps for HOA Boards

• Pull your governing documents (CC&Rs/bylaws) and see what they say about reserves and reserve studies. If those documents require a reserve study on a schedule that’s different from statute, flag this for legal review.
• If you have significant common assets, budget for a professional initial study and annual updates. A professional study protects the board and helps avoid surprise special assessments.
  • Common “signiticant assets” owned by Single-Family HOAs:
    • Private Roads & Sidewalks
    • Playgrounds & Recreational Spaces
    • Picnic Areas
    • Retaining Walls
    • Irrigation Systems
    • Fencing
    • Landscaping
• Prepare for WUCIOA (Jan 1, 2028). Even communities that have previously claimed exemptions should re-check applicability under RCW 64.90 as that law becomes the uniform standard for all Washington common-interest communities.
• When in doubt, we recommend completing a Reserve Study to help your association fully understand the value of common assets and plan for their replacement.

The Bottom Line

If your HOA maintains meaningful shared assets, Washington law requires a reserve study⁠. With the adoption of RCW 64.90 in 2028, the requirement will become even more consistent across the state. A proper reserve study gives your board fiscal clarity, helps prevent special assessments, and keeps you aligned with state law. Get a Reserve Study started!

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Disclaimer: The information provided in this article is for general informational purposes only and reflects the opinions and interpretations of Reserve Studies NW, LLC based on publicly available Washington statutes. It is not legal advice, and no reader should act or refrain from acting on the basis of this content without consulting qualified legal counsel familiar with the specific facts and circumstances of their community. While efforts were made to ensure accuracy at the time of publication, Reserve Studies NW, LLC makes no guarantees or warranties regarding completeness, applicability, or currentness of the information.