RESERVE FUND

Necessary Reserves https://ohiocondolaw.com/
 
The association is legally responsible for the maintenance and replacement of all common areas. If the funds are in the bank for the replacement, the jobs are more likely to be done properly and when needed as opposed to settling for a less than adequate job or an unqualified contractor. 
 
Without reserves, a board is left with little choice other than a special assessment. Facing the natural opposition of owners to special assessments, some members insist on seeing extensive deterioration before they agree to have the work completed. Resistance, resentment, association political unrest, and lower re-sale values all result from special assessments. With a special assessment, the issue switches from the need for the work, to the economic hardship on the owners. 
 
The yearly collection of reserve funds that are incorporated into a budget provides a more accurate picture of association costs. In addition, owners can more easily afford a little more each month versus an assessment of thousands of dollars. 
 
In order to preserve the community, it is important to set aside reserves yearly for the community.