Why Reserves? If We Have a Surplus, What Then?

/ Owner - November 1, 2018

Q: I am the attorney for several community associations, and there are two questions I am always asked.

  1. Why should we budget for reserves? How much reserves do we need? Is there any legal requirement as to the amount of reserves we should keep? Where can we invest these reserves?
  2. If the association is successful and has a surplus at the end of ITS fiscal year, what can be done with these funds?

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