amount needed for reserve in Nebraska

Nebraska requires $100,000. (just kidding)

What you need depends on how much it costs to maintain and replace what "you have". This amount will be different for every condominium.

Here is a sample:
http://goo.gl/ovJvo

The only correct way to find out what you need is to calculate it. And the only way you can calculate it is by doing a reserve study.

By just tossing out a number like $100,000 or saying 3 times annual assessment is just guessing. Many condo's run this way, but its not the correct way to do it.

Bonnie,

I thing you are thinking of a contingency fund.

Contingency funds are for unexpected repairs/maintenance that might come up or to make up the difference when expenses exceed your budget. A Reserve fund are to pay for expected maintenance and repairs to the common areas (walls, streets, etc.).

Some associations have a contingency fund as part of their reserves. Some have it in addition to their reserves. Some refer to the contingency fund as a reserve (as it is funds held in reserve just like your personal savings account).

I have found no law about contingency funds. However, I recall a rule of thumb that said an association should have a contingency fund of 100K or an amount equal to 2-3 times your annual assessments - which ever is greater.

Again, this contingency fund would be to supplement paying the bills while waiting for members to pay their assessments. It is in addition to your Associations Reserve fund, which requires a reserve study to identify how much would be needed to be saved so when it comes time to repave the roads or repaint the building the money is available.

Hope this helps.

Tim

Bonnie,

It looks like we were tying at the same time. Here is a link to a different thread in this forum that talks about reserve funds

http://www.hoatalk.com/Forum/tabid/55/forumid/1/postid/103517/view/topic/Default.aspx

Tim