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- Condo rules for reserve funds typically include the following:
- Maintenance of Reserve Fund Accounts: Condominium corporations must maintain one or more accounts designated as reserve fund accounts, which are used for major repairs and replacements1.
- Purpose of Reserve Fund: The reserve fund can only be used for major repair and replacement of common elements and assets, not for alterations or improvements2.
- Key Principles for Proper Reserve Funding: These include having sufficient cash, a stable reserve transfer rate, and fiscal responsibility3.
- Statute Changes: Condominiums and cooperatives must reserve for structural- and safety-related items separately, order a reserve study every 36 months, and provide a copy of the study to all unit owners4.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.A condominium corporation must maintain one or more accounts in its name designated as reserve fund accounts, which all reserve fund contributions must be deposited into. A condominium corporation may have multiple reserve funds, but all reserve fund accounts must only be used for major repairs and replacements.www.condoauthorityontario.ca/wp-content/uploads/…A reserve fund is a distinct fund maintained by the condo corporation that can only be used for the purpose of major repair and replacement of the common elements and assets of the corporation. The fund cannot be used for any alterations or improvements to the corporation’s common elements.www.condoauthorityontario.ca/resource/reserve-fu…Keep in mind the key principles to proper reserve funding: Sufficient cash: Always have enough to meet future expenses. Stable Reserve transfer rate: Predictable, steady transfer ensures consistency. Fiscal responsibility: It’s all about being prudent and making sure every cent is accounted for.www.reservestudy.com/resources/article/hoa-reser…Funding of Reserves and Potential Statute Changes for 2022–2023
- All condominiums and cooperatives must reserve for structural- and safety-related items separately from other reserve items.
www.fcapgroup.com/flcaj/flcaj-articles/funding-of-re… - People also ask
Condo association reserve fund guidelines - Condo Control
There is no magic number. If you’re in Florida, the answer will be different from an association in New York or Toronto. However, the following five factors will determine what your community’s magic number is with reserve funds: 1. Repair and replacements costs 2. The investment return on your reserve … See more
When unit owners think of maintenance, they think of day-to-day or even seasonal maintenance. This includes things like lawn cutting, building painting or cleaning the common … See more
Some common excuses that condo associations hear from homeowners who don’t want to pay for reserve fund maintenance include: “I won’t be living here when that maintenance happens” or “I’ll be dead by then, why should I pay for it now?” or “Won’t this … See more
The first part of a reserve study determines which components of the association should be included in the study. A component is a physical item that will deteriorate over … See more
The financial study will reveal the current state of your financial funding compared to the projected expenses of the component study. It should … See more
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WEBAssuming an average monthly condo assessment of $400, this can mean somewhere between $60 and $160 per unit, per month should be earmarked for Reserves. If the …
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