HOA glossaryAssessments & accounting

What is percent funded?

The ratio of actual reserve savings to the amount the reserve study says should be on hand today.

Also called: Percentage funded, Funded ratio

Percent funded compares the current reserve balance against the fully funded balance — the share of each component's replacement cost that has been consumed to date. A roof halfway through its life should be about half funded; an association where every component is at that mark is at one hundred percent.

It is a snapshot of adequacy, not of health on its own. A community at forty percent with a rising contribution and no near-term replacements may be in better shape than one at seventy percent facing a roof next year. The funding plan matters as much as the ratio.

Lenders, insurers and buyers increasingly ask for it, and low ratios have real consequences at closing. It is worth tracking as a board metric rather than a line in an appendix.

Why it matters to a board

Report it to owners every year alongside the budget. It makes the case for adequate contributions better than any amount of argument.

Where the answer lives

Your recorded declaration and bylaws first, then the act that governs associations in your state. Whichever is stricter is the one that binds you.

Related terms

Reserve fundMoney set aside over time for the scheduled repair and replacement of major common area components.Reserve studyA professional inventory of common area components with remaining life, replacement cost, and a funding plan that keeps the reserve solvent.Special assessmentA one-time charge levied on top of regular assessments to fund a specific expense the budget and reserves cannot cover.Operating budgetThe annual plan of expected income and expenses that determines what each lot is assessed for the year.
General information, not legal advice. This entry explains what the term means, not what your association must do about it. Any notice period, cure window, fine cap, vote threshold or deadline comes from your recorded declaration and your state's act — those differ in all fifty states and are amended every session. Updated August 2026. Confirm the current requirements with an attorney licensed in your state before acting.
Operating budget Planned unit development All 65 terms

Start with one community. Or all forty.

Free for thirty days. No card required.

Start free trial Talk to sales
For management companies with 500+ doors, ask about Multi-Portfolio onboarding.