HOA boards face growing reserve and governance risks

By AI, Created 5:01 PM UTC, May 18, 2026, /AGP/ – New industry data show many self-managed homeowner associations are underfunded, struggling with communication and document control, and facing higher risk of special assessments and volunteer burnout. HOA Start is hosting a May 20 webinar to help boards address the most common mistakes.

Why it matters: - Self-managed HOAs are taking on more operational responsibility to save money and keep control. - The tradeoff is growing financial and governance risk when boards lack systems, planning, and continuity. - Underfunded reserves can turn routine maintenance into emergency assessments that hit homeowners with unexpected costs. - Volunteer burnout and weak recordkeeping can undermine board stability and community trust.

What happened: - HOA Start released new research and case-study findings showing rising pressure on volunteer-led HOA communities. - The company said its 2026 reserve planning research found nearly two-thirds of HOA boards were not confident reserve plans would cover future repairs and capital expenses. - The same study found roughly 70% of associations were underfunded versus industry reserve benchmarks. - Benchmarking data from more than 2,400 self-managed communities found only 31% met recommended reserve funding levels. - Another 42% fell below reserve benchmarks entirely. - HOA Start will host a live webinar, “The 7 Biggest Mistakes Self-Managed HOAs Make (And How to Avoid Them),” on May 20, 2026, at 1:00 PM ET. - Kim Ruiz will present the session for self-managed and volunteer-run HOA boards.

The details: - Clayton Thompson, CEO of HOA Start, said many volunteer board members are trying to manage complex responsibilities with limited time and limited systems. - Thompson said many associations still rely on spreadsheets, email chains, paper records, and institutional memory instead of centralized HOA management tools. - Industry experts say delayed financial planning and weak governance are leading to emergency special assessments, homeowner frustration, and volunteer turnover. - Online discussions from HOA board members and homeowners show recurring complaints about underfunded reserves, undocumented decisions, poor transparency, and burnout. - In several recent cases, associations reported reserve funding below 20%, followed by major special assessments and board resignations. - Estimates suggest 100,000 to 150,000 U.S. associations operate without professional management companies. - The webinar will cover poor financial tracking, undocumented decisions, weak homeowner communication, no enforcement process, lost records, volunteer burnout, and no long-term planning. - Registration is available through the webinar registration page provided in the release. - HOA Start said its software centralizes communication, documents, payments, financial tracking, architectural requests, violations, and homeowner engagement on one platform. - The company also says its platform supports online payments, member communication, events, voting, architectural and work order requests, and community websites. - HOA Start says it serves thousands of associations nationwide.

Between the lines: - The data points to a broader shift: more communities are choosing self-management, but many are not building the financial controls needed to match that choice. - Reserve weakness is not just a budgeting problem. It can become a governance problem when boards are forced to make rushed decisions without clear records or homeowner buy-in. - The webinar positions HOA Start as both a software provider and an education vendor for boards under pressure.

What’s next: - HOA boards can attend the May 20 webinar to get practical guidance on the most common self-management failures. - More boards may move toward centralized software if they want to reduce reliance on informal records and volunteer memory. - The reserve funding gap is likely to keep driving special assessments and board turnover unless communities improve long-term planning. - HOA Start says more information is available at hoastart.com.