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Posted By JeffreyF2 on 12/22/2023 5:42 AM
Our D. R. Horton developer made the early decision not to establish a "reserve fund" for our sub-division. He has clearly that fact in the CC&R We have no amenities (pool or club house) and none are planned. The only "common area" is an open field in the community and that is is being maintained through a budgeted landscaping contract. Our roads have a life of about 15 to 20 year life spand. My question is, do we need to establish a Reserve Fund, as a priority requirement as soon as we assume the management of the new HOA?
Information on how you establish and account for reserve funds (if you association decides to do that) is in FS 720.303(6). Since it appears that reserve funds are not required per your documents, you would need to have a vote of the membership to establish a reserve fund. All that is layed out in the statute.
If you don't have any amenities, is the developer charging you any monthly or quarterly assessments? If there is an assesment, what does it pay for? Do you have a property manager?
If you choose not to have reserves, remember that any larger project, like when the roads need repair or the landscaping needs to be replaced, or you have hurricane clean up, you will probably have to pay a special assessment. I think most people would rather pay a small amount of money each month now rather than pay a larger assessment at a later date.