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CHAPTER 10:
RESERVES
Maintaining a healthy reserve fund is part of a board's fiduciary duty. A task that
can be easily overlooked, creating and managing an up-to-date reserve account is
vital and often required by law.
RESERVE FUND
A reserve fund is money set aside for additions to major components the
association is obligated to maintain and future replacements and repairs that don't
occur on an annual basis. Association member assessments, dues, fees, and fines
fund reserves. Additional funds can be generated from interest and returns earned
on existing reserve accounts.
Reserve fund expenditures often include, but aren't limited to:
• Roof replacements
• Pool pumps
• Playground equipment
• Replacing fencing in common areas
• Painting of community-associated buildings
• Major landscaping projects
• Construction and major renovations
• Road and sidewalk resurfacing
