Definition
A required summary telling owners how well-funded the reserves are and whether special assessments are anticipated.
A reserve disclosure is a summary, required in many states, that tells owners the status of the reserve fund — how much is set aside, how it compares to what's recommended (percent funded), and whether special assessments are anticipated.
It gives owners insight into the community's long-term financial health and any looming big-ticket costs. Reserve disclosures are often provided with the annual budget and in resale packages.