Funding Your Reserves: Banking Against Surprises

Bill and Martha Jensen bought a new condominium in Brockton in 1995 and lived there for 19 years. In 2014 they sold the unit to Max and Rita Diaz. A year later, the condominium association’s board of directors voted to replace the building’s roof and imposed a special assessment to pay for the project. “That’s not fair,” the Diaz’s complained, insisting that they shouldn’t have to pay the full assessment to replace a roof that sheltered the Jensens for 95 percent of its life.  It wasn’t fair—but major components and systems don’t last forever, and big assessments are what happens when a board doesn’t set aside funds on a regular basis to update those components and systems.    Read the article……………