the rule for the 10% condo fees for the reserve.

'I live in a condo assoc that that requires that we pay 10% of the condo fee;s into the reserve to satisfy the banks and Fannie Mae.
Our association is responsible only for the common land and our clubhouse and not for any part of the home's. So we have a reserve fund at this time that far exceeds any expenditure that could occur. Our roads are in good condition and are good for another 20 years because of so little use. And that would be our biggest expense at that time. So why are we building a reserve at the rate of $10,000 plus per year.
My understand is that Fannie may was interested in making sure that a condo assoc. would have enough money in the reserve to cover expenses to a home that needed a roof or siding and etc. so could we cut the 10% percent to a lower figure of our choice?

You may need to contact your association attorney. I believe here in Nevada HOA's need one and a half times their annual operating expense to be fully funded, and are allowed to be at 85% to be functional under Nevada law. Condos in your state could be different, Our board has not had any issues with owners securing new loans or re-fis.

There are no rules but one I heard was an association ought to have 6 months dues per unit in their reserves.

Dom

I do not think you know what expenses are down the road. You need a Reserve Study to determine such.

EXACTLY CORRECT

new roads from scratch = $1,000,000 per mile

'overlay' 2" asphalt = $75,000 per mile

grind and replace top = $200,000 per mile

(@ today's prices in SC)

YOU MAY ACTUALLY BE WAY WAY WAY UNDERFUNDED

Condo boards usually have much more of an expense load that indicated here....this board sounds like a master association.

Dominic,

You don't really know if your reserves are properly funded or not until you have a reserve study done.

For more info on reserve studies, see the following thread Subject: Reserve Studies/Funds 101:

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

Our last quote for milling and paving of roads in the DC area was $14 per square yard (based on 10K square yards). Our study is based on $16 per square yard as this allows for any repairs that may be required once they mill the roads.

Upkeep and repair of a club house, in my opinion, can be as expensive as roads.

I find it odd that you are in a condominium association (your reference to condo fees) and believe that the Association only has the roads and club house as their responsibility. Typically, a condominium also maintains many aspects of the individual properties. You may want to read your governing documents to verify what you believe is correct actually is.

BTW: in the reserves, don't forget about sidewalks, playgrounds, signage, storm water management, etc.

Perhaps he heard something he didn't want to hear.

What Kerry said. I wish Florida had a statutory requirement for reserve studies. Most of the board members here over the last few years couldn't tell you what reserves are for if their lives depended on it. Education is key but, as they say, you can lead a horse to water but you can't make it drink. Many board members are ignorant, know they're ignorant, and don't care enough to learn.

It's only a week and a half since the OP posted. I've seen posters who post and, since this is the first place they've found that talks about this stuff in a mostly intelligent, don't think to check back in for a few weeks. Give him some time before writing him off. Kerry's right, too, that responses can still help people even if the OP never returns.