Arizona HOA reserve study requirements (2026)
No mandated reserve study cycle; resale disclosure of reserve study (if any) required for communities of 50+ units.
Quick facts
What the law actually requires
Arizona does not require HOA or condominium associations to commission a reserve study or maintain a minimum reserve balance. A.R.S. Title 33, Chapter 16 (Planned Communities) and Chapter 9 (Condominiums) authorize boards to adopt budgets that include reserves and to collect assessments accordingly under § 33-1242, but impose no study mandate.
Where Arizona does act is at the point of sale. A.R.S. § 33-1806 requires planned communities with fifty or more units to provide a resale disclosure within ten days of a pending sale that includes the total amount held in reserves and a copy of the most recent reserve study if any exists. The parallel condominium provision, § 33-1260, requires disclosure of reserve fund amounts in the resale package for condo units.
Because no reserve study is mandated, an association that has not commissioned one has no study to include in the resale disclosure. National Reserve Study Standards guidance is a full study every 3-5 years with annual updates.
Arizona HB 2397 (2026), signed by Governor Hobbs, expands both resale disclosure packages effective September 12, 2026. Under the amended §§ 33-1260 and 33-1806, the disclosure packet must also include a copy of the association's most recent income and expenses financial statement for all operating and reserve accounts. Associations with a lengthy reserve study may substitute a summary of no more than 10 pages, but a purchaser who requests the full report is entitled to receive it from the association within 3 business days. HB 2397 does not create a new requirement to conduct a reserve study — disclosure of the study remains conditioned on one existing.
How ReserveDeck handles Arizona
ReserveDeck applies its Generic NRSS format to Arizona properties: a National Reserve Study Standards report with the percent-funded metric, a 30-year cash-flow projection, and the three funding plans (Recommended, Threshold, Baseline). There is no Arizona-specific disclosure page.
Built-in Arizona compliance.
Select A.R.S. §§ 33-1806 / 33-1260, as amended by HB 2397 (eff. 9/12/2026) from the Compliance Jurisdiction dropdown and ReserveDeck's PDF builder produces the right disclosure format automatically. Engine math is identical across jurisdictions — only the deliverable changes.
Frequently asked questions — Arizona
Is a reserve study required under Arizona law?
No. Arizona statutes do not require an HOA or condominium association to conduct a reserve study or maintain a minimum reserve fund. Boards are authorized to budget reserves but are not compelled to do so.
What does Arizona require at resale regarding reserves?
For planned communities with 50 or more units, A.R.S. § 33-1806 requires the association to disclose the total reserve balance and provide a copy of the most recent reserve study, if one exists, within ten days of a pending sale. A.R.S. § 33-1260 requires similar reserve fund disclosures for condominiums.
Does having no reserve study hurt an Arizona HOA at resale?
The statute only requires the association to provide the most recent reserve study if one exists, so a community with no study has nothing to include on that item. Lender project-approval guidelines (Fannie Mae, FHA) may separately ask for reserve documentation.
How often should an Arizona association update its reserve study?
Arizona law does not set a cycle. National Reserve Study Standards guidance is a full study every 3-5 years with annual updates, and lender project-approval guidelines may set their own recency expectations.
What changes under Arizona HB 2397?
Effective September 12, 2026, HB 2397 expands the § 33-1260 and § 33-1806 resale disclosure packets to include the association's most recent income and expenses financial statement for both operating and reserve accounts. Associations with a lengthy reserve study may provide a summary of no more than 10 pages but must deliver the full report within 3 business days if a purchaser requests it. The bill does not require associations to conduct a reserve study they were not already conducting.