Condo Association Management Blog

Can HOA board shift operating funds to reserves at end of year?

Posted on Mon, Dec 5, 2011 @ 07:32 AM

Can the HOA Board decide to take excess operating funds and move it to reserves at the end of the year? Our HOA fees are $1200 per month. $1000 per month is for operating costs and $200 a month goes into reserves. However this year we had excess of $160,000 in operating funds. So the board decided to roll it over to reserves. We are not sure in our reserves. Can the board make this decision on its own or should they let the homeowners vote on it? We only have 130 units so they collected $1230 from each homeowner in excess. (Please note these numbers have been rounded out.)

Tags: Repairs, Condo Reserve