V.B. from Macomb County, Michigan writes: Dear Mister Condo, Hello, Mister Condo! Our condo community is drowning in mismanagement and financial ruins. Our Property Management company is telling us we need to pay dwelling insurance for the outside dwelling. Is that our responsibility as condo owners? Clearly, they mismanage the funds stating they can no…
Category: Reserve Fund
10% Condo Reserve Fund Rule
R.A. from Fairfield County, Connecticut writes: Dear Mister Condo, I have been told that there is a CT State legal requirement for a Fairfield County PUD or Condo Association to provide a minimum contribution to the reserve of at least 10% of its operating budget. Is this true? If so, can you tell me where to find/cite…
HOA / Condo Rebuild Estimate versus Reserve Study
B.D. from Beaufort County, South Carolina writes: Dear Mister Condo, Should my HOA commission a rebuild estimate every five years? What proportion of the rebuild estimate should be insured? For example: if the rebuild estimate is $20 million and the insurance limit is $16 million is this enough? If an engineer survey of the structure…
Condo Clubhouse Remodeling May Require Vote of Owners
Y.G. from Cook County, Illinois writes: Dear Mister Condo, Our condominium’s Board of Directors wants to spend 50% ($260,000) of Master Association’s budget ($520,000) for repair and renovation of our clubhouse. Do they need to call the condo owners meeting to approve such large expenditures? What max percentage of the budget they can approve for…