Washington HOA reserve funding rules, explained

Source status as of July 11, 2026

The official RCW 64.90.545 page flags a 2026 change. The enrolled update is Substitute House Bill 2354, Chapter 96, Laws of 2026, effective June 11, 2026. This explainer incorporates that session-law text rather than relying only on older summaries.

The applicability question is separate. RCW 64.90.360 describes when RCW 64.90 applies and includes transition language for communities created before July 1, 2018. The same RCW page includes a reviser’s note that older chapters, including RCW 64.38, were repealed by 2024 c 321 effective January 1, 2028. A specific community’s governing chapter should be verified from its creation date, declaration, amendments, and any applicable transition provision.

The rule in ordinary language

When RCW 64.90.545 applies and no statutory exemption fits, the association must prepare and update a reserve study.

The basic cadence is:

1. The initial reserve study must be prepared by a reserve study professional.
2. The initial study is based on a professional visual site inspection of completed improvements, a review of plans and specifications for unbuilt improvements, or both when construction is partly complete.
3. The reserve study must be updated annually.
4. At least every third year, an updated reserve study must be prepared by a reserve study professional and based on that professional’s visual site inspection.

That is a document and timing rule. It does not, by itself, tell a buyer that the association is adequately funded or tell a board exactly how much to collect. The study, budget, assessments, and governing documents still have to be read together.

Current exemptions after SHB 2354

The 2026 SHB 2354 amendment changed subsection (2). Unless the governing documents require otherwise, the reserve-study requirement in subsection (1) does not apply to these categories:

1. Common interest communities containing units restricted in the declaration to nonresidential use.
2. Common interest communities that have only nominal reserve costs.
3. Common interest communities consisting only of middle housing, as defined under RCW 36.70A.030, that do not and will not in the future require onsite construction, operation, and maintenance of any reserve component to manage wastewater and protect health and safety and ground and service waters.
4. Communities where the cost of the reserve study or update exceeds 10 percent of the association’s annual budget.

Do not infer an exemption from a property label alone. The middle-housing language has conditions, and the “unless the governing documents require otherwise” clause matters. If an association says it is exempt, ask which subsection it is using and what records support that answer.

Transition questions to verify before relying on the rule

For a Washington community, start with these document questions:

1. Was the common interest community created on or after July 1, 2018?
2. If it was created before July 1, 2018, has the declaration been amended to elect into RCW 64.90?
3. Does another RCW 64.90 applicability provision or limited-applicability provision affect this community?
4. Has the association identified any reserve-study exemption in RCW 64.90.545(2)?
5. Do the governing documents impose reserve-study requirements even if a statutory exemption might otherwise apply?

Those are not legal conclusions. They are the records a board, owner, or buyer needs before deciding which Washington reserve-study rule is in play.

Operational questions to ask

If you are on a board:

• Which chapter governs the association today, and where is that conclusion documented?
• If RCW 64.90.545 applies, when was the current reserve study prepared, who prepared it, and when is the next professional visual-site-inspection update due?
• If the association claims an exemption, which subsection applies and where are the supporting records kept?
• Do the governing documents require a reserve study or a stricter cadence even when the statute would otherwise exempt the association?

If you are an owner:

• Ask for the current reserve study, the most recent annual update, and the board record showing when the next professional site-visit update is due.
• If there is no study, ask whether the association is claiming an exemption and which record supports it.
• Ask for the current budget, reserve balance, and any board minutes discussing known major repairs or replacements.

If you are a buyer:

• Ask the seller, agent, or manager which chapter is being used for the resale packet.
• Compare the resale certificate’s reserve-study statement to the most current reserve study included with the packet or the no-current-reserve disclosure.
• If the property is described as middle housing, ask whether the association is relying on the 2026 middle-housing exemption and what records support every condition in that exemption.

What to do next

For reserve-study timing, start with RCW 64.90.545 and the enrolled SHB 2354 session law. For resale due diligence, read the related Washington resale-certificate explainer at /us/washington/laws/resale-disclosure-rules/.

This page is an explainer, not legal advice. It does not decide whether RCW 64.90 applies to a specific property, whether an exemption is valid, or whether an association is financially healthy.