Eliminating Reserve Funds

The article discusses the idea of eliminating reserve funds to reduce fees in condos. It highlights that reserve funds are important as they ensure that there is enough money to pay for major replacements and restoration in common properties. Without reserve funds, owners would be assessed an amount each time equipment or windows need to be replaced, and not every owner would have the funds to pay the assessed amount. The article also highlights the issues arising from underfunded reserve funds in some communities, leading to the inability to obtain insurance to cover the cost of escalating problems. Proper reserve fund studies and fully funded reserve funds are essential for the continued viability of communities.