Have you ever wondered what happens when your HOA faces a significant expense it didn’t see coming? Whether it’s a sudden roof repair or a planned road repaving, the answer lies in a little something called reserve funds. These funds keep your community running correctly, protect your property value, and give everyone peace of mind. What Exactly Are Reserve Funds? Imagine your HOA’s finances as two buckets. One is for daily operations like landscaping and utilities – the operating fund. The other bucket is the reserve fund, a safety net for major repairs and replacements. It’s not for buying snacks at the clubhouse; it’s for keeping your shared spaces in top shape. If your community’s pool needs a $50,000 overhaul in five years, your HOA shouldn’t be scrambling for cash at the last minute. Instead, the reserve fund saves a portion of your monthly dues over time to cover that expense. Easy on the wallet, right? Real-Life Scenarios: Why Reserve Funds Matter Let’s take a closer look at some examples. Scenario 1: The Roof Over Your Head Your HOA…
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