Reserve Fund
A reserve fund accumulates owner contributions for future major repairs and capital replacements, protecting against unexpected special assessments.
| Reserve Purpose | Typical Replacement Cycle |
| Roof replacement | 20 to 30 years |
| Elevator modernization | 15 to 25 years |
| HVAC system replacement | 15 to 20 years |
| Pool resurfacing | 10 to 15 years |
| Facade repairs | 15 to 25 years |
| Parking lot resurfacing | 10 to 15 years |
| Fire system upgrade | 20 to 25 years |
| Funding Strategy | Recommendation |
| Monthly contribution | Include in service charges |
| Target balance | 30% to 50% of projected replacement costs |
| Minimum reserve | 3 to 6 months operating expenses |
| Investment | Low-risk, liquid accounts |
| Reserve study | Professional assessment every 3 to 5 years |
| Special assessment avoidance | Adequate reserves eliminate need |
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