Presenting a Reserve Analysis to Utah HOA Owners

The yearly summary

Every year, the association must give owners a summary of the most recent reserve analysis or update. The statute does not prescribe a format. A good summary fits on one page: the analysis date and who prepared it, the current reserve balance, the recommended yearly contribution, what the budget actually contributes, and the big items due in the next five years.

Any owner who asks for the complete analysis must get a copy. If the association drags its feet, a court can order the summary or the full analysis produced quickly, at the association's expense.

57-8a-211(5); court order: 57-8-7.5(8).

________ Homeowners Association

Annual meeting of the members

Item 6 Budget and reserves

6.1
Present the adopted budget, with the reserve line item on a line of its own.
The board adopted next year’s budget on ________. It puts $________ into reserves, which is what our reserve analysis recommends.
Statute57-8a-215(2). Condos: 57-8-7.6, new in 2026
6.2
Give owners the summary of the most recent reserve analysis or update.
The summary in your packet comes from the analysis completed in ________.
Statute, yearly57-8a-211(5)(a); 57-8-7.5(5)(a)
6.3
Tell owners how to get the complete analysis.
Any owner who asks will get a full copy. Ask the manager or any board member.
Statute, on request57-8a-211(5)(b)
6.4
Walk through the funding plan: what comes due in the next five years and what it costs.
The largest items ahead are ________ in ________ and ________ in ________.
Good practicePlan contents: 57-8a-211(4)
6.5
Explain the 45-day window on the reserve line item.
Owners holding 51 percent of the votes can veto the reserve line item at a special meeting they call within 45 days of the budget being adopted.
Statute57-8a-211(7); 57-8-7.5(7)
6.6
Say whether any reserve money will pay for routine upkeep this year.
The board does / does not plan to use reserve funds for day-to-day maintenance.
Statute limits it57-8a-211(9)

The budget and the reserve line item

Each annual budget must include a reserve line item. The amount is what the board considers prudent in light of the analysis, or more if the governing documents require it. The board then presents the adopted budget at a meeting of the members, a rule that has applied to HOAs since 2011 and, since SB 122 of 2026, to condominiums as well.

The owners’ 45-day window

Owners have two separate ways to object. Within 45 days after the budget is adopted, owners holding at least 51 percent of the allocated voting interests can veto the reserve line item at a special meeting they call for that purpose. If they do, the association falls back to the last reserve line item that was not vetoed. Owners can also disapprove the whole budget by the same 51 percent vote within 45 days of the meeting where it was presented.

Both thresholds are high, and vetoes are rare. But a board that explains the analysis clearly is far less likely to face one.

Veto: 57-8a-211(7). Budget: 57-8a-215(3).

Questions boards ask

Does a Utah HOA have to present the reserve analysis at the annual meeting?

Not in those words. The statute requires a yearly summary of the analysis for owners and the presentation of the adopted budget, including its reserve line item, at a meeting of the members. Many boards hand out the summary at the annual meeting.

Can owners vote down the reserve contribution?

Yes, but it takes 51 percent of all allocated voting interests at a special meeting called by owners within 45 days after the budget is adopted. If they veto it, the last non-vetoed reserve line item applies.

How do I get a copy of our reserve analysis?

Ask the board or manager in writing. Utah requires the association to provide a complete copy of the analysis or update to any owner who requests one.

Presenting it to owners