Condo Association Management Blog

The key word in your question is "improvements".  
 
The specific answer to spending from Reserves that are definitely for 'improvements' is NO. However, the definitions of some replacements can sometimes be interpreted as either maintenance work or improvements, such as replacements of something that was original but replacements are using modern materials.  
 
To add something which was not originally there is clearly neither replacement nor maintenance.That would be improvement or addition to the common property. 
 
Note that this may also apply to common property landscaping alterations that can be expensive nowadays,and may rightly become a matter for a vote; as when the cost is considered 'material' i.e.typically "more than $10,000" but the item has not been included in any non - Statutory 'Other reserves' budget.  
 
Statutory Reserves are for specified major items like roof replacing / maintenance, repainting buildings and renewing pavement . All of these are recognized in Florida Condo Law (718) as being Statutory Reserves.  
 
They each should have a specific financial allocation in the reserves account and their future mainetenance costs should be estimated by a periodic(5years?)Reserves Fund Study.I believe their expenditures for a given year must form part of the reserves spending plan of the passed annual budget being used for the yearly assessment of members' fees.  
 
In any multi - phase condo association which is administered by a 'master' associaton, each of the individual phase associations should have and should monitor its own budget reserves account...but while there CAN be co-mingling of the Reserves bank accounts, comingling there must be NO comingling of the expenditures.  
 
A degreee of 'common sense is needed, too, as much in this vexatious area of condo - living as any other if the association is not to become ungovernable due to interminable voting. So,it can be a wise policy to very carefully plan the reserves spending for each year, both Stautory items and 'other' reserve items youe own association reserves for future, non - yearly recurring expenses, and to spend the reserve funds ONLY on those items unless there is an emergency to respond to.  
 
It is important you point out the need for a vote on the big issues(read your documents to know the voting rights and rules for this) and perhaps be willing to be just a little 'flexible' on the marginal calls, with relatively low expenditures involved.  
 
I am not a lawyer. 
 

This very same thing came up at one of our meeting 4 weeks ago. Our President was on the phone (due to working out of the area), anywho 2 board members (for the record)live out of the area and are not here in Fla 365 days a year. 1 in Michigan and the other in Canada....hmmmm you say. They decided in a public meeting without telling everyone the facts, decided to remove 13,000 from our interest reserves and finish ourdriveway. These interest funds have been set aside for EMERGENCYS and yes we do need a new driveway, but it can wait 2-3 more years. These 2 ppl that I speak of have no problem with spending other ppls money but wont budge monies from their own wallets.  
 
 
 
Thank goodness we have a President that is on top of things and quickly took actions. The meeting that I speak of was regarded NULL AND VOID (later at a meeting where he could personally be there) and all decisions these 2 ninnies made were stopped.  
 
Thanks to JS for his knowledge and caring for our Association.  
 
 
 
 
 

I live in condo's in cols, ohio. I was wanting to find out if its a law for condo associations to keep a reserve or a percent in the bank incase of things that come up?

Reserves are for replacements, not improvements. By National Reserve Study Standards, Reserves are to be used for expenses that are common area maintenance responsibilities, life limited, with predictable remaining useful lives, that are above a minimum threshold cost of significance.  
Associations that do otherwise get themselves into trouble, spending Reserves for projects for which they were not intended, leaving the Reserves depleted for their intended purpose/projects. 
Re: Ohio, my understanding is no reqmt there (or any other state) to keep a min balance in the bank. Reserves are collected for one purpose... to be spent (on the right projects).

With respect to the State of Florida, the funds set aside in the replacement fund must be used only for the purposes intended. If the replacement fund is maintained on a "component basis", then funds for say roof cannot be used for paving, etc. without a majority vote of the members. The board may not make this decision. 
 
 
 
 
 
If the expenditure is for a component that is not included in the reserves, then all bets are off. Even if a "pooling" method is used, the item must still be a component within the pool. 
 
 
 
For the State of Florida, there needs to be discussion of the proper method of computing the funding using the pooling method. Often, the folks conducting the study have a different point of view from what is required under the Statute.