Why Does Your Community Need a Reserve Fund?
Reserve funds aren’t an extra expense—they just spread out expenses more evenly. There are other important reasons homeowner associations place monies into reserves every month: Reserve funds meet legal, fiduciary, and professional requirements. A replacement fund may be required by:
- Any secondary mortgage market in which the association participates;
- State statutes, regulations, or court decisions;
- The community’s governing documents.
Many states require associations to disclose the amounts in their reserve funds to prospective purchasers. The American Institute of Certified Public Accountants (AICPA) requires the community association to disclose its reserve funds in its financial statements. (source: http://www.hoacommunitysolutions.com )
To learn more about Reserve Funds and other community association benefits and requirements, contact FirstService Residential - Georgia (formerly Community One Associates ) today at 678-624-9453.