Before a board votes to use reserves to fund a project they should ask three questions to determine whether or not to use HOA or Condominium reserve funds.Members should ask:
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Is this a maintenance project? Use HOA reserve funds for maintenance projects only. Painting the exterior of the building(s) is a great example of a maintenance project.
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Is this a recurring expense? Expenses that occur yearly should be funded out of the operating budget.
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Is this an improvement? Reserve funds are to be used for maintaining existing common assets. If the association wants to add a pickleball court, the funds will need to come out of operations or a special assessment.
