BrianM24 (Maryland)
Posts: 3
Posts: 3
Posted:
Hello HOA experts,
I'm trying to sort out whether my HOA is one of the few stereotypically troublesome ones that would require significant effort by our busy neighbors to reform. Let's start with the Reserves. Our state law provides:
MD Code, Real Property, Ā§ 11B-112.2
Items included in annual budget
(c) The annual budget shall provide for at least the following items:
(1) Income;
(2) Administration;
(3) Maintenance;
(4) Utilities;
(5) General expenses;
(6) Reserves; and
(7) Capital expenses.
Amount of reserves
(d)(1) Subject to paragraph (2) of this subsection, reserves provided for in the annual budget under subsection (c) of this section shall be the funding amount recommended in the most recent reserve study completed under Ā§ 11B-112.3 of this title.
Does that mean that each year the HOA is required to deposit into the Reserves the annual funding recommendation stated in the Reserve study? At a minimum, of course.
Also, should the HOA have a separate bank account designated for Reserves? I would think not having a separate account would cause issues with comingling funds.
I'm trying to sort out whether my HOA is one of the few stereotypically troublesome ones that would require significant effort by our busy neighbors to reform. Let's start with the Reserves. Our state law provides:
MD Code, Real Property, Ā§ 11B-112.2
Items included in annual budget
(c) The annual budget shall provide for at least the following items:
(1) Income;
(2) Administration;
(3) Maintenance;
(4) Utilities;
(5) General expenses;
(6) Reserves; and
(7) Capital expenses.
Amount of reserves
(d)(1) Subject to paragraph (2) of this subsection, reserves provided for in the annual budget under subsection (c) of this section shall be the funding amount recommended in the most recent reserve study completed under Ā§ 11B-112.3 of this title.
Does that mean that each year the HOA is required to deposit into the Reserves the annual funding recommendation stated in the Reserve study? At a minimum, of course.
Also, should the HOA have a separate bank account designated for Reserves? I would think not having a separate account would cause issues with comingling funds.