Kentucky HOA reserve study requirements (2026)
No mandated study cycle; replacement reserve contributions required by statute for pre-2011 condos; planned-community HOAs governed by the Kentucky Planned Community Act since June 2023; NRSS 3-5 year study cycle recommended.
Quick facts
What the law actually requires
Kentucky's condominium law operates under two frameworks depending on when the condominium was created. Condominiums established before January 1, 2011 are governed by the Kentucky Horizontal Property Law (KRS §381.805 to §381.910). Under KRS §381.870, all co-owners are bound to contribute, in proportion to their percentage of common interest, toward the expenses of administration and of maintenance, repairs, and replacement reserves of the general common elements. This is a statutory obligation, not merely a permissive power.
Condominiums created on or after January 1, 2011 are governed by the Kentucky Condominium Act (KRS §381.9101 to §381.9207). This newer act does not replicate the explicit replacement-reserve-contribution language of the Horizontal Property Law. KRS §381.9203 requires the resale disclosure statement to include the amount of any reserves for capital expenditures, but it does not prescribe a minimum balance or mandate a reserve study. That resale-disclosure duty was extended in 2012 by HB 433 to condominiums created before January 1, 2011 as well, so it now applies to resales under both Kentucky condominium frameworks.
Under neither statute is a formal reserve study required, nor is a study cycle specified. The practical gap is filled by the National Reserve Study Standards (NRSS) and lender underwriting guidelines — FHA condo approval, Fannie Mae, and Freddie Mac project standards — which routinely expect a current, NRSS-compliant study. Most Kentucky boards commission a Level I or II study every 3-5 years to determine the correct reserve contribution and to protect community loan eligibility.
Non-condominium HOAs organized as planned communities are governed by the Kentucky Planned Community Act (KRS §381.785 to §381.801), enacted by SB 120 (2023 Ky. Acts ch. 23) and effective June 29, 2023, for planned communities established after that date. The Act covers declarations, board budgets — which may include reserves for the future repair and replacement of capital goods — financial-record disclosure, and assessments, but like the condominium statutes, it does not require a minimum reserve fund or a reserve study.
How ReserveDeck handles Kentucky
ReserveDeck applies its Generic NRSS format to Kentucky 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 Kentucky-specific disclosure page.
Built-in Kentucky compliance.
Select KRS §381.870 — co-owners must contribute to replacement reserves (Horizontal Property Law) 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 — Kentucky
Does Kentucky require replacement reserves for condominiums?
Yes, for older condominiums. KRS §381.870 (Horizontal Property Law) requires all co-owners to contribute toward replacement reserves for the general common elements in proportion to their common interest. Condominiums created after January 1, 2011 under the Kentucky Condominium Act (KRS §381.9101+) do not have the same explicit contribution requirement, though resale disclosure of reserve balances under KRS §381.9203 applies to condominiums under either framework, since a 2012 amendment (HB 433) extended that disclosure duty to pre-2011 condominiums as well.
Does Kentucky require a reserve study?
No. Neither the Horizontal Property Law, the Kentucky Condominium Act, nor the Kentucky Planned Community Act mandates a formal reserve study or sets a study cycle. Most boards commission an NRSS-compliant Level I or II study every 3-5 years to determine the correct reserve contribution amount and maintain lender eligibility.
Which Kentucky statute requires reserve contributions?
KRS §381.870, part of the Horizontal Property Law (KRS §381.805-§381.910), requires co-owners to contribute toward replacement reserves for the general common elements. This applies to condominiums created before January 1, 2011. The full text is available at the Kentucky Legislature's official statutes website.
Do FHA and Fannie Mae require a reserve study in Kentucky?
Indirectly, yes. FHA condo project approval and Fannie Mae / Freddie Mac project standards expect evidence of adequate reserves and often a recent reserve study. Maintaining an NRSS-compliant study keeps a Kentucky community loan-eligible for its residents.
Does Kentucky have a statute governing planned-community HOAs that are not condominiums?
Yes. The Kentucky Planned Community Act (KRS §381.785-§381.801), enacted by SB 120 (2023 Ky. Acts ch. 23) and effective June 29, 2023, governs planned communities established after that date. It covers declarations, board budgets that may include capital-repair reserves, financial disclosure, and assessments, but it does not require a minimum reserve fund or a reserve study.