capital improvement funds

Started by JeanL3 • 2 replies • 1236 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

JeanL3 (Texas)
Posts: 4

Posted:

I live in texas, and a question came up at our board meeting, needing to know if there is a cap on the monies that can be accrued in a capital improvement fund. we had a homeowner who did not want monies spent from the fund and want to fully explain CIF and the rules, laws, etc for spending those accruements annually or however often they need to be exhausted. thank you for any information you can share.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Jean,

How much to save and a when the funds would be spent should be spelled out in your Reserve Study. If you haven't had a reserve study completed and updated every 5-7 years, your Association should get one done soon.

If your in a condominium, I would suggest paying to have a study done professionally.
If your in a homeowners association, you may be able to do a study on your own. However, if you have a pool, clubhouse or other major amenity, you may still want to pay for a study to be done.

For more information on Reserve Studies see this thread:

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

I found nothing in the Texas Statutes that placed a limit on the amount of Reserves that could be collected. However, I may have missed it.

TimB4 (Tennessee)
Posts: 21,059

Posted:

oops,

I didn't realize the topic was posted twice. I'll repost my reply in the other thread and encourage others to post their replies in that thread as well.

Please post replies in this thread:

http://www.hoatalk.com/Forum/tabid/55/forumid/1/postid/169815/view/topic/Default.aspx

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here