RESERVE FUND LEVELS

Discusses the importance of maintaining adequate reserve fund levels in condominium communities. It emphasizes that a well-funded reserve fund is crucial for addressing unexpected repairs, replacements, and major maintenance projects within the condominium. The article highlights the potential consequences of inadequate reserve funds, such as the need for special assessments or borrowing funds, which can place a financial burden on unit owners. It discusses factors to consider when determining appropriate reserve fund levels, including the age and condition of the building, the size of the community, and the types of common elements. The article also emphasizes the role of reserve fund studies and professional advice in assessing and planning for the long-term financial needs of the condominium.