HOA must properly fund reserve account

Q: I am a homeowner, and was HOA board president from August 2019 to the end of 2023.

We started with a new management company in August 2025. We did not see financials from them until this past July, and it takes one month after a quarterly board meeting approval to receive three months of approved financials.

Can homeowners request copies of the monthly financial statements once the management company has completed them, but before the board approves them, so they don’t have to wait several months?

I am asking this question due to financial problems in our community. Starting in 2023 we have owed reserves from operations funds for almost three years with a total of $118,700, and at the end of 2025 this figure increased to $129,899.75 owed to reserves without one penny paid back in almost three years.

Our community is not doing well in other areas, but the financials are our biggest concern. With this much owed to reserves, we are at a negative funded amount in the operating account even though it looks as if we have $108,825.14 cash on the balance sheet at the end of August 2026.

A: Under NRS 116.31175 an association board shall upon written request of a unit’s owner make available the financial statement of the association. A preapproved financial statement doesn’t exist as only those financial statements approved by the board can be made available to homeowners.

If your association is not properly funding its reserve account, hopefully when your 2027 budget is sent to the owners, financial steps to increase your reserves will be taken. Under NRS 116.31152 (1a and 1b), your association is required by law to annually review the results of your reserve study to determine whether your reserves are sufficient, and at least annually, your association is required to make adjustments to your association’s funding plan in order to provide adequate funding of the required reserves.

Barbara Holland, CPM, CMCA, AMS, is an author, educator and expert witness on real estate issues pertaining to management and brokerage. Questions may be sent to [email protected].