Budgets and Reserves

• What are Reserves?
• When does the reserves law go into effect?
• How does an association know if its reserves are sufficient?
• Why was it necessary to pass the reserves law?
• Why are association reserves necessary?
• Won't this reserves law increase the cost of living in a condominium?
• Can associations or their members do their own reserve studies or must they hire professionals?
• What if the association's reserve study is wrong - the association's reserve turns out to be inadequate?
• If we change managing agents, will that reduce the maintenance fee or reserve requirements?
• Must the association have a separate reserve account for the money for each item, such as the roof, elevators, or paving?
• Our documents limit the money our board can spend without owner approval. How does the reserves law affect those limits in our declaration?
• What if my board refuses to make a reserve study for our project or refuses to establish a reserve?