Glossary
What is a reserve fund?
Money set aside, apart from operating cash, to repair and replace the community's major components as they wear out: roofs, paving, elevators, paint.
Also called replacement reserve, reserves.
In Havn
Reserves are their own fund in Havn, kept apart from operating from the first entry, with contributions transferred on schedule and the balance on every resale certificate.
Fund accountingThe reserve fund is funded by a line in the annual budget and spent only on the components it was collected for. A reserve study, prepared by a specialist, lists each component, its remaining life, and its replacement cost, and recommends a funding level. Several states require a study on a schedule, and some require minimum funding.
Lenders look at reserves closely: a conventional loan on a condominium generally expects the budget to allocate a share of income to reserves, and a resale certificate discloses the reserve balance. A community with thin reserves ends up levying special assessments instead.
Keep Reading
Guides
- HOA Board Member Duties, by RoleEvery director owes the association the same two duties.
- HOA Special Assessment RulesA special assessment is the charge nobody budgeted for.
- How to Read HOA Financial StatementsFour pages a month tell a board everything about the association's money.
Templates
- HOA Dues Increase and Special Assessment Notice TemplateA free HOA letter template for a dues increase or a special assessment: the new amount and when it starts, why, the payment schedule, how to pay, and where to ask questions.
Laws and Documents
- HOA laws by stateEvery state's association statutes and resale rules on one map.
- HOA letter templatesFree notices, ballots, and letters a board can copy and send.
See how Havn handles it with your own community.
HOA management software with a homeowner portal owners actually use. Resale documents are included; the requester pays for each one.