Dear Mister Condo,
Are Condominium Associations permitted to use Reserve Funds to purchase and install items within units such as intercoms or programmable thermostats. Are these items considered common or non-common items? Each unit receives their own separate electricity bill for which they are responsible for. Would this be different for the purchase of low-flow shower heads where the water bill is paid for by the association and thus receives the savings?
Mister Condo replies:
E.I., just about any common element owned by the Association is eligible for Reserve Fund funding. Each and every asset of the association comes with a cost and a repair or replacement estimate. If the intercoms, thermostats, and low-flow shower heads are owned by the association, then they are common elements (limited or otherwise) and can be included in the list of Reserve Fund items. However, if these items are not owned by the association then the association should not be paying for them, Reserve Fund or otherwise. The bottom line is who owns the asset. As long as it is the association, it is their responsibility. Putting money away today for tomorrow’s repairs and replacements is exactly what the Reserve Fund is for. All the best!