Does an HOA need a reserve study?

It depends on your state. Roughly a dozen states require a periodic professional reserve study on a fixed cycle -- typically every 3 to 5 years -- while another group has conditional requirements for certain association types, and many states leave reserve planning entirely to the board and governing documents.

Can a self-managed HOA still hire an accountant?

Yes, and it is common. Self-managed simply means the board handles governance directly rather than paying a management company. Many self-managed associations still hire an accountant or bookkeeper for the mechanics of financial recordkeeping while the treasurer and board set policy and review the numbers.

Can an HOA foreclose on a home for unpaid dues?

In most states, yes, subject to notice and procedural requirements that vary significantly. Some states allow nonjudicial foreclosure of an assessment lien; others, including Texas, generally require a judicial court order first. Several states have recently raised the delinquency threshold required before foreclosure can begin.

HOA Finances, Dues & Reserves

Reserve study requirements, special assessment approval, lien notice, interest caps, and foreclosure procedure — this is the most consistently regulated area of self-managed HOA law, with a state-by-state lookup covering all 50 states.

In short: HOAs across the U.S.

How an HOA handles money depends on your state and governing documents. Many states require the board to adopt an annual budget and let owners inspect financial records, and some require reserve studies or reserve funding for major repairs. Assessments, late fees, and collection tools such as liens are shaped by state law, and some states limit dues increases without an owner vote. Pick your state to see its rules.

Look up your state's rules

Choose your state to see its finance rules, including condominium rules where we've researched them.

Finance rules depend on your state

Whether you need a reserve study, who must approve a special assessment, and what notice is required before a lien or foreclosure are set differently in every state.

We've researched each state's rules and linked the sources. Choose your state to read the guide with the rules that actually apply to your association.

HOA finance rules by state

This guide is general information about how HOAs typically operate and is not legal advice. Consult your governing documents and, where needed, a qualified attorney.