81. Do HOAs have to pay tax on their saved capital expense account each year?

Under US Internal Revenue Code 528, homeowners associations are exempt from taxes on income carried over, as long as at least 60 percent of gross income comes from membership assessments and 90 percent of that income is spent on maintaining the association’s property.

1976—Pub. L. 94–455, title XXI, § 2101(a), Oct. 4, 1976, 90 Stat. 1897, added part heading and analysis for part VII.
§ 528. Certain homeowners associations

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