Use Bylaw to Ensure Funds Are Ready for Repairs, Replacements

Use Bylaw to Ensure Funds Are Ready for Repairs, Replacements



A well-funded reserve account is a clear indication of how prepared a community association is to deal with its long-range maintenance needs. Without a well-funded reserve account, most associations’ only option to pay for repair needs that arise is to impose a special assessment on their members. Unless your state law or governing documents specify how your community’s reserve is to be funded and managed, it’s up to the board to create a policy that will bind future boards, so that the community remains protected.

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