Percent funded
The share of a reserve fund's ideal balance that an HOA actually has on hand — the headline health score in a reserve study.
Percent funded is the single most useful number in a reserve study. It compares the cash actually sitting in the reserve fund against the fully funded balance — the amount that should be there given how worn the shared components are. Reserve analysts lean on a widely used rule of thumb: 70% and above is strong, 30 to 70% is fair, and below 30% is weak and signals a higher risk of a special assessment. A 100% score isn't required, and plenty of healthy associations deliberately sit below it — the trend across several studies matters more than any single year. See how to read a reserve study before you buy.
What percent funded means
| Percent funded | What it signals | Special-assessment risk |
|---|---|---|
| 70% and up | Strong, well-prepared reserves | Low |
| 30–70% | Fair — funded, but watch the trend | Moderate |
| Below 30% | Weak; deterioration is outrunning savings | High |
The direction of travel matters more than any single year: a fund climbing from 45% to 60% is healthier than one sliding from 80% to 65%.