Reserve Account/Ohio

This is in regards to the State of Ohio. Are reserve accounts permitted to have checking writing ability or must the funds be transferred to the operating fund and a check written from that account? Thank you

Steve is correct in that the law doesn't specify the account type but it does specify that adequate reserves must be maintained UNLESS a majority of homeowners vote EVERY YEAR to underfund the reserves:

For HOA's

5312.06 Powers of owner's association.

(A) Unless otherwise provided in the declaration or bylaws, the owners association, through its board of directors, shall do both of the following:

(1) Annually adopt and amend an estimated budget for revenues and expenditures. Any budget shall include reserves in an amount adequate to repair and replace major capital items in the normal course of operations without the necessity of special assessments, unless the owners, exercising not less than a majority of the voting power of the owners association, waive the reserve requirement annually.

For Condos

5311.081 Powers and duties of board of directors.

(A) Unless otherwise provided in the declaration or bylaws, the unit owners association, through the board of directors, shall do both of the following:

(1) Adopt and amend budgets for revenues, expenditures, and reserves in an amount adequate to repair and replace major capital items in the normal course of operations without the necessity of special assessments, provided that the amount set aside annually for reserves shall not be less than ten per cent of the budget for that year unless the reserve requirement is waived annually by the unit owners exercising not less than a majority of the voting power of the unit owners association;

For others that are reading this, Myron added clarifying information about the issue in a separate thread:

http://www.hoatalk.com/Forum/tabid/55/forumid/1/tpage/1/view/topic/postid/168465/Default.aspx#168470