Condo Association Management Blog

I'm on the board of a 108 unit high-rise condo building in Delaware. I wouldn't want to take any risk in investing in stocks etc. Plus, depending on our projected expenditures based upon our Reserve Study, I personally would only suggest a short-term CD that would not interfere with any upcoming projects.

Check your governing documents. Most restrict HOA's to "safe" invetments.

You need to first look at your association Declarations and By-Laws. Research to see if your state has specific requirements/guidelines for association reserve funds.  
 
Then finally, consult your association's attorney.

I don't know that it's against the law to invest reserve funds in stocks, bonds, mutual funds, etc; however I don't think it's good business practice. The BOD should strive to make sound, safe investments. Most assn's only invest in money market accounts and CD's. The CD's can be laddered to correspond to the needs stated in the reserve study.

I agree 100% with Mary. Depending on the amount of money to invest, a excellent strategy would be the MMA and laddered CD's.  
 
The important component is fully understanding your reserve study and determining when items are scheduled for replacement or repair.

Can anyone tell me where in the Florida state statutes it is mandated that condominiums reserve funds for major condominium repaires?

Reserves for capital expenditures and deferred maintenance are required by Section 718.112(2)(f), 
Florida Statutes, and must be included in the proposed annual budget. The only way to reduce from "full" reserves is by vote by owners.