Ohio Revised Code 5311.081 and your reserves
Two short sections of Ohio law decide what your association's budget has to say about reserves. Neither one requires a reserve study. Both require you to fund reserves adequately, or get the owners to waive them, every year.
What section 5311.081 says, in plain terms
Section 5311.081 sits in Ohio's condominium chapter, Chapter 5311. Read with the association's declaration, it does three things that matter for reserves:
- The unit owners association must prepare and distribute a budget each year.
- That budget must include an adequate reserve fund for the repair and replacement of the major capital items the association maintains, in the normal course of its operations.
- Owners exercising a majority of the voting power can waive the reserve requirement for one year.
The statute does not define "adequate", set a funding formula, require a study, or require a professional to prepare one. That gap is why most Ohio boards use a reserve study: it is the clearest evidence that the reserve line is adequate for the buildings you actually have.
Planned communities: section 5312.06
Homeowners associations under Ohio's planned community law, Chapter 5312, have a parallel budget and reserve rule in section 5312.06. If your community has private streets, a pool, a clubhouse, ponds or entry walls, the same reasoning applies: the budget should carry reserves for them unless the owners waive it. Whether an older community falls under Chapter 5312, and how its declaration interacts with it, is a question for the association's attorney.
Reserve or waive, one year at a time
| Question | Fund the reserve | Owners waive it |
|---|---|---|
| Who decides | The board adopts a budget that includes the reserve line. | Owners exercising a majority of the voting power can waive it for one year. The board cannot waive on its own. |
| What the budget shows | A reserve contribution sized to repair and replace the major capital items: roofs, paving, siding, elevators. | No reserve contribution, or a smaller one, for that year only. |
| How long it lasts | Until the next budget. The study is the evidence that the amount is adequate. | One year. The waiver has to be signed again for the next budget. |
| The risk you carry | Higher dues now, fewer surprises later. | Lower dues now. When the roof is due, the money usually comes from a special assessment or a loan. |
| What a study adds | It turns "adequate" into a number the board can defend. | It shows owners what they are waiving before they sign. |
Summary of Ohio Rev. Code 5311.081 for condominiums; planned communities follow 5312.06. How the waiver is collected (meeting, ballot or signed consents) depends on your declaration and bylaws, so check with the association's attorney.
A board checklist for budget season
- Confirm the fiscal year in the bylaws and work back four months to the date you need to order a study or an update.
- Read the declaration's maintenance chart. The study should cover what the association maintains, not what it would like to.
- Decide early whether the board will propose funding or a waiver. A waiver needs a majority of the voting power, which takes time to gather.
- If owners are asked to waive, give them the study's funding plan first, so they can see what they are deferring.
- Minute the decision: the reserve amount adopted, or the waiver and the count.
What Ohio does not settle
Some summaries say Ohio condominiums must put at least 10 percent of the budget into reserves. We could not find that figure in the section text, so we do not rely on it here; ask the association's attorney if it matters for your budget. Ohio also has no rule on how often a study should be updated, who may prepare one, or what it must disclose to buyers. CAI's National Reserve Study Standards are the usual reference for those points.
Mortgage lenders set their own test. Fannie Mae's condo project review looks for at least 10 percent of the budget going to reserves, or a reserve study that supports less. A waiver year can make that harder for owners who sell or refinance.
Ready to price a study? See how much a study costs, or start a request below.
Statutes and sources
- Ohio Rev. Code 5311.081, unit owners association budget and reserves
- Ohio Rev. Code 5312.06, planned community budgets and reserves
- Community Associations Institute, Summary of State Reserve Fund Laws, June 2026
- Community Associations Institute, Reserve Studies and Funding Resources (National Reserve Study Standards)
- Fannie Mae Selling Guide, project review budget and reserve requirements
General information about Ohio law. Not legal advice.
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