Reserve Funds and the Unexpected
2020 has been full of unexpected trials. Planning for Murphy’s Law is part of an HOA board’s responsibility. Make sure your HOA is covered for the unexpected by having an adequate reserve fund. What is a reserve fund? A reserve (capital) fund is your HOA’s saving account; it is not used for the day-to-day necessities […]
An HOA Reserve Fund: What Is, Why We Need It, and How is It Determined
An HOA’s reserve fund is your association’s equivalent to a savings account. Where day-to-day expenses are managed from the association’s operating fund, major repair and replacement costs come from the reserve fund. Planning for and funding the operational needs of an association is straightforward. Line items such as garbage removal and lawn care services are […]