Repair Cost, Reserve or General Maintenace?

Started by WilliamS1 • 3 replies • 967 views

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WilliamS1 (South Carolina)
Posts: 113

Posted:

We have ongoing debates whether repair cost should be paid out of reserve or operational maintenance account. Some items are clear cut but others are not. Pool painting. Some reserve plans seem to allow for painting and other don't. Is there any straightforward law or IRS document regarding this subject?

JohnK3 (Pennsylvania)
Posts: 967

Posted:

William,

Your ByLaws probably state the purpose and uses of reserves. Or possibly your CCRs. Start there first, and check for how much wiggle room is present. But pool painting sounds like a maintainance issue.

WilliamS1 (South Carolina)
Posts: 113

Posted:

The CCR do not address this issue as we are an older hoa. Is it length of service life of asset or repair, is it amount spent. I am trying to get a bead on the reasoning behind... Thanks

MaryA1 (Arizona)
Posts: 7,043

Posted:

William,

If it is a reserve account item it will be listed in the reserve study. If you don't have a reserve study, perhaps it's time to bight the bullet and have one performed. A good study will give you all the info needed to adequately maintain the reserves and eliminate any confusion as to what is reserve funded and what is not.

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