This fund is used to help pay for your larger projects, such as replacement of roads or repairing sidewalks in the homeowners association These monies usually have strict criteria for how they are used based on community rules and regulations, bylaws and accountability.
A good way to look at the reserve fund is to understand it’s used to pay for expenditures that don’t occur on an annual basis. Some examples of reserve fund use are:
- Roof replacement on common area buildings
- New pump at the community pool
- New playground equipment at neighborhood parks
- Replacing fencing in HOA controlled areas
- Painting of community associated buildings, such as clubhouses
- Major landscaping projects
- Construction and major renovation such as sidewalk projects