Definition
A measure of reserve health comparing actual reserve savings to the ideal amount for the age of the community's assets.
Percent funded expresses how healthy an association's reserves are: the ratio of the actual reserve balance to the "fully funded" balance a reserve study calculates for the current age and condition of the components.
A higher percent funded means a lower risk of a special assessment. Many boards aim to stay comfortably funded rather than chasing a perfect 100%, but very low percent-funded levels are a warning sign that a big bill may be coming.