Massachusetts Condo Reserves Under MGL Chapter 183A

Massachusetts Condo Reserves Under MGL Chapter 183A

Massachusetts governs condominiums through Massachusetts General Laws Chapter 183A, the Condominium Act. Section 10 covers common areas and assessments. Section 14 covers governance. The act does not impose a state level reserve study mandate, but it requires that the board fund maintenance and reserves consistent with the master deed and bylaws. The Massachusetts Office of the Attorney General handles condo complaints, and the Division of Insurance issues guidance that increasingly references reserve discipline at renewal.

What MGL Chapter 183A actually requires

Massachusetts condo boards must budget responsibly, fund reserves on the schedule the bylaws describe, and maintain financial records owners can review. The act predates modern reserve study practice, so most boards adopt reserve studies as a matter of fiduciary diligence rather than statutory compliance.

What good Massachusetts practice looks like

Four practices distinguish Massachusetts boards.

First, commission a reserve study every 3 to 5 years. New England weather cycles age building envelopes quickly.

Second, integrate the study into the annual budget process.

Third, separate operating and replacement reserves at the bank.

Fourth, follow CAI New England chapter bulletins for legislative changes and insurance market updates.

Recent Massachusetts developments

The Massachusetts Legislature has considered condo reform bills in recent sessions. The 2024 and 2025 sessions saw proposals tightening reserve disclosure requirements and adjusting transfer fee rules. None impose a state level reserve study mandate yet, but momentum is visible.

What your board should do this quarter

Take three actions.

1. If your last reserve study is older than 5 years, contract a new one.
2. Confirm operating and reserve accounts are separate.
3. Read the latest CAI New England chapter legislative recap.

This is general information for board members, not legal advice. Consult your attorney for your specific situation.

How Manorway helps

Manorway is an AI assisted executive governance platform that helps Massachusetts boards keep their reserve work, disclosures, and filings in one audit ready place. The reserve narrative writes itself once your study is loaded. Book a free governance checkup, no strings attached.