9
7. HOW DO
YOU PLAN AND
BUDGET FOR A
RESERVE FUND?
Performing a reserve study is the best way to
plan and budget a reserve fund. These studies
will give you an overview, plan for how much
needs to be saved and how long it should take.
Typically, a predetermined percentage of yearly
or monthly assessments will go towards the
funding of a reserve account—usually between
25% and 40%. How much money your association
puts aside can change as reserves become
fully funded, and the needs of your community
change.
If your community is facing a potential shortfall
in your reserve funds, then adjustments can be
made. Your board should work closely with your
accountant, community manager, and a certified
reserve fund study specialist to find a proper
resolution.
7
6
5
4
8
9
10
11
3
2
