Projects that require reserve spending

Started by LeoS1 • 4 replies • 1088 views

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LeoS1 (Florida)
Posts: 17

Posted:

We have a community building that needs a new roof and is covered by our reserves.

Are we allowed to spend these reserve funds after the bod makes a decision or do we need a vote by the community?

Leo

Orlando Lakes Village
Orlando FL

SusanW1 (Michigan)
Posts: 5,202

Posted:

If you have a reserve fund, then you should have a plan for those funds. That means there is a planned amount and timing for replacing the roof.

You just have to implement the plan. That is the Board's duty. You don't need an additional vote from the general membership, unless your bylaws say specifically that the reserve fund expenditures have to be OK'ed by the membership.

JohnM3 (Florida)
Posts: 288

Posted:

We has a similar situation in that our 21 year old docs called for a clubhouse. But the developer got away with not building it. We had the money and we built it from the reserves. Understand to hold down assessments we had a reserve but renamed it savings. We used the heck out of it and still do. Why not? We are insured up to the limit that insurance co allow. We are in a hurricane zone. If I was your treas I would get 3 bids present the plan to the board and request a vote on it.
BOD are elected to run a community not to ask the members what to do.

SusanW1 (Michigan)
Posts: 5,202

Posted:

"Reserve Funds" do not pay for NEW projects!

It is the plan for them AFTER they exist, so they will be there in the next 25 years.

JohnM3 (Florida)
Posts: 288

Posted:

You run your HOA your way we run ours our way. We have been in existence for 21 years and we are still below $100 per month. It is legal in Florida to change a reserve account to a savings account.

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