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Reserve Funds for Florida Condo Association

Started by HarryB7 • 4 replies • 273 views

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HarryB7 (Florida)
Posts: 2
Posted:
Our Board has recently decided to purchase CD’s using Reserve Funds. Our community manager stated that it would require a membership approval for the purchase as she claims it is using reserve funds for purposes other than repairing or replacing common elements.

I believe that this is incorrect. The Board is simply choosing to deposit funds with other banks.

Which opinion is correct?
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By HarryB7 on 03/01/2024 5:16 PM
Our Board has recently decided to purchase CD’s using Reserve Funds. Our community manager stated that it would require a membership approval for the purchase as she claims it is using reserve funds for purposes other than repairing or replacing common elements.
Wrong. The reserve funds are not being "used" (meaning spent). They are being conservatively (in this case, with no risk) invested.

I think this manager requires close supervision.
KerryL1 (California)
Posts: 14,550
Posted:
If the reserve funds are in CD accounts that are specifically designated for reserves, your manager is wrong. Where are these finds now????

LetA (Nevada)
Posts: 2,679
Posted:
I get the feeling that the OP's meaning is that the whole amount of the reserves was not invested in a CD, only a small portion.

We just had a CD mature and we looked at our reserve study for the 4th and 5th year and bought a nice-sized CD that will mature
when we have an upcoming major project to undertake.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By HarryB7 on 03/01/2024 5:16 PM
Our Board has recently decided to purchase CD’s using Reserve Funds. Our community manager stated that it would require a membership approval for the purchase as she claims it is using reserve funds for purposes other than repairing or replacing common elements.

I believe that this is incorrect. The Board is simply choosing to deposit funds with other banks.

Which opinion is correct?

She (the CM), is wrong, It is a BOD decision.

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