Condo Association Management Blog

It would be a great idea, but not required. The "reserve" money should be kept in a seperate account. Trouble is, most boards don't have the consistency to handle these items well, you would be a good board member! 

This is a legal question and would require review of your documents. If it is not required, then it isn't a matter of it was handled correctly or not. 
 
This type of matter can come up with any reserve item. It is best for the board to have a general idea of when most of these items are to be replaced and a funding plan. What is typicall called a Reserve Study Plan/Survey or a Capital Improvement Plan is needed for your community to try to avoid or minimize additional assessments. (Depending on your state language, many people call them special assessments, but in Michigan, special assessments are for things that the association doesn't own, and additional assessments are for when there are not adequate funds for repair or replacement of association responsibilities.) 
 
Even small condos would greatly benefit from a Reserve Fund Study, and if you don't want to hire someone, a group of you can do a self study. There is software that can help with that. Do a googe search on reserve fund study, self-study.

Does this five unit garage provide additional parking space for say five specific condo owners for a specific period of time or is the space for parking for all owners on a first come first serve basis? It is almost impossible to answer your question with any degree of accuracy or intelligence without knowing these details. You need to go back to the documentation that originated when this garage was acquired. Was it purchased separately from the main building or together? It depends on how the sales agreement(s) were written at the time of purchase as to how the space was intended to be utilized and maintained by the association. Of course, there may have been modifications to the original sales agreement(s) and needs to be researched as well. 
 
 
 
My question to you is why was a special assessment necessary for roof replacement? This should be a reserve fund item that would have been budgeted for years in advance if your association is doing things correctly. Ask your management company or the board of directors if a Reserve Study has been performed and if so when was the last study completed. Your roofs as well as all major capital expenses should have been calculated into the budget so the funds would be there when the time came for replacement. 
 
 
 
At my property we have an underground parking garage as well as a section of above ground covered parking which were all assigned to respective units when the property was built. We have 29 units and there are not enough spaces to provide each unit with two spaces. No allowances are made for owners with only one space and our monthly HOA fees are utilized to cover expenses relating to maintenance and repairs of both the underground garage and above ground covered parking normally from one fund.... Read More 
 
 
 
I hope your association and board are able to work this out peaceably and in a way everyone can agree on but things are usually not that cut and dry! Good luck!

This is the Op. 
 
 
 
To answer a few questions/comments posed above. The five units in the garage have separate TIN numbers and have been bought and sold to unit owners through out the years. Each space in the garage is specifically assigned to an owner. The special assessments were necessary because the association has been run with the mindset of not paying anything more into the building as is not necessary. They did not have a reserve fund; they had a savings account that was funded at the end of the year with funds not used during the course of the year. In fact, a property management company was hired in the mid eighties who immediately hiked the dues to start a reserve fund. Less than a year later, the owners fired the management company and refunded the reserve funds back to the owners! I hope this might give you a better view of the owners I am dealing with in the building. 
 
 
 
As to provide more disclosure, I was voted in as treasurer last year and work (or rather am seeking to work) in the treasury/cash management field so I understand the financial aspects of what needs to be done. I seek guidance in the legal aspects. Thanks for the help. 
 

We have a similar situation only it is a stand alone Recreation Complex with large swimming pool, tennis courfts, meeting room, weight room, etc.  
 
There is no formal reserve fund for the Rec complex, hence funds are intermingled with condo reseve funds. About 30% of condo fees are due to Rec. Complex. Fees are based on size of condo which in turn is also applied to the REc. Complex irrespective of whether one uses the facility or not. It if difficult to impossible to make changes as need 75 plus 1% of owners to be in favor.  
 
 
 
Good luck