L.M. from New Haven county, Connecticut writes: Dear Mister Condo, I have lived in a complex for nearly 25 years and while it’s fine, a new board and management company took over. The owners are responsible for their own windows, storm door and garage doors. I have replaced mine but some of the condos have…
Category: Reserve Fund
HOA Profits from Sale of an HOA-Owned Unit
R.M. from Hartford County, Connecticut writes: Dear Mister Condo, Our association is considering selling a unit owned by the HOA. I am wondering the net proceeds after any costs, taxes, etc., how would it be classified in the balance sheet. Would it be operating? Would it be considered surplus and distributed back to the unit…
Condo Reserve Fund Used to Pay Legal Expenses
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…
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…