Every 3 years

California HOA reserve study requirements (2026)

Full study with visual inspection every 3 years, reviewed annually; disclosure with each annual budget.

Governing statute

California Civil Code §§ 5550 (Reserve Study Requirements, as amended by SB 900 eff. 2025-01-01) and 5570 (Reserve Funding Disclosure Summary)

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Quick facts

Governing statute

Civil Code §§ 5550, 5570

Study cycle

Full study every 3 years; funding plan reviewed annually

Visual inspection

Required on accessible areas of major components

Annual disclosure

Assessment and Reserve Funding Disclosure Summary (§ 5570)

Major components (SB 900)

Includes gas, water, and electrical service lines the association must maintain, per §4775

Owner waiver of reserves

Not permitted under § 5550

Funding plan required

Yes — adopted as part of the annual budget report

What the law actually requires

California's Davis-Stirling Common Interest Development Act governs HOA reserve studies. Civil Code § 5550 requires the board, at least once every three years, to cause a reasonably competent and diligent visual inspection of the accessible areas of the major components the association is obligated to repair, replace, restore, or maintain, as part of a study of the reserve account requirements — where the current replacement value of those components is at least one-half of the association's gross budget, excluding the reserve account. The board must also review that study annually. Effective January 1, 2025 (SB 900), major components include gas, water, and electrical service lines to the extent the association is responsible for them under Civil Code §4775.

Civil Code § 5570 requires the board to include an Assessment and Reserve Funding Disclosure Summary with each year's annual budget report. The statute prescribes the form: (1) the regular assessment per ownership interest; (2) any scheduled additional assessments, with their date, amount, and purpose; (3) a yes/no answer on whether the reserves will be sufficient to meet expected costs over the next 30 years without additional assessments; (4) the additional assessment amount needed if the answer to (3) is no; (5) a statement that all major components are included in the reserve study; (6) the reserve amount required and the current percent funded; and (7) a five-budget-year reserve projection.

Davis-Stirling does not provide a mechanism for unit owners to waive the § 5550 reserve study by vote. Conducting the study and reviewing the funding plan each year are duties the statute assigns to the board.

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How ReserveDeck handles California

When a property's compliance jurisdiction is set to California, ReserveDeck's report prints the Davis-Stirling §§ 5550, 5570 requirements described above on its Disclosures page and states the study cycle in the cover letter. The reserve math is the same in every state.

ReserveDeck does not reproduce a state's statutory disclosure form; it provides the reserve figures a board needs to complete one (reserve requirement, percent funded, multi-year projections, and the funding plans).

Built-in California compliance.

Select Davis-Stirling §§ 5550, 5570 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.

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Frequently asked questions — California

How often must a California HOA conduct a reserve study?

California Civil Code § 5550 requires a full reserve study with a visual inspection of the accessible areas of major components at least once every three years. The board must also review that study annually, and each year's annual budget report must include the Reserve Funding Disclosure Summary required by § 5570.

Can California HOA owners waive the reserve study requirement?

No. Davis-Stirling does not include a mechanism for unit owners to waive the § 5550 reserve study requirement by vote. Conducting the study and reviewing it annually are duties the statute assigns to the board.

What is the Reserve Funding Disclosure Summary?

The disclosure required by Civil Code § 5570, included with each year's annual budget report. The statute prescribes its contents: the regular assessment, any scheduled additional assessments, a yes/no answer on 30-year reserve sufficiency (with the additional assessment needed if the answer is no), a statement that all major components are included in the study, the required reserve amount and percent funded, and a five-year reserve projection.

Does § 5550 specify what happens if a California HOA misses the three-year cycle?

No. Civil Code § 5550 does not spell out a penalty for missing the three-year cycle. It establishes the visual-inspection study and the board's annual review of it as an ongoing statutory obligation.

Does ReserveDeck produce a § 5570-compliant PDF?

ReserveDeck's report prints the Davis-Stirling §§ 5550, 5570 requirements on its Disclosures page and provides the reserve figures the statute's disclosures call for (reserve requirement, percent funded, multi-year projections, and funding plans). It does not reproduce a statutory form.