T.E. from Burlington County, New Jersey writes: Dear Mister Condo, Can Reserve Funds be used to pay for legal fees of a private homeowner that sued the HOA? They now want the HOA to pay for his legal fees for a lawsuit he filed against the HOA. Mister Condo replies: T.E., I am sorry that…
Search Results for: reserve
Reallocating Condo Reserve Fund for Unusual Expenses
Anonymous from Connecticut writes: Dear Mister Condo, Could you comment on the definition of a condo’s “reserve account” and what it is intended for and how the funds can be used? For the past 10 years, our condo has been running smoothly but this year a few events happened that is well above our control. We…
Paving Special Assessment is not a Reserve Fund Builder
B.A. from Oakland County, Michigan writes: Dear Mister Condo, For 2 years we have paid a special assessment for new roads/parking areas within our complex. The board has collected the money and placed it in a Reserve Account. It has come to our attention that more than enough has been collected in the first 18…
Reserve Fund Credit for Condo Sellers
P.T. from Erie County, New York writes: Dear Mister Condo, Regarding a condominium’s capital reserves: when an owner sells his unit, is he also entitled to receiving a credit from the purchaser for the amount of capital reserves (the pro-rata amount based on the total number of units) on account at time of the sale?…