What is "Reserve Fee"? On my Yearly M.F.

[arnief]

I have operating Fee
Real Estate Tax
and Club dues, but can't imagine what the Reserve fee means.

 

[tschwa2]

Reserve fees go toward larger renovation needs based on a schedule. They aren't used every year but accumulated until needed. For example a roof may have a 20 year life expectancy so every year they collect 1/20th of that amount so they will have it when needed. Replacing a refrigerator by be something they do every 7 years so they collect 1/7th of that every year and so on.

 

[SmithOp]

I own King's Land, the billing statement included the owners association annual statement and budget. There is a section that details what is replaced with the time cycle, that's what the reserves are for.

Sent from my BLU R1 HD using Tapatalk

 

[VegasBella]

My experience with Reserves Fee is that it is a flexible fee that is added or removed depending on the Reserves Fund. Every HOA needs a Reserves Fund and that fund is for UNEXPECTED expenses. You're supposed to keep that Reserve Fund funded 80-100% or depending on your county laws. Sadly, some HOAs don't keep it funded and then when disaster strikes they don't have the money to fix things. This is beyond insurance, btw. This is a fund to cover what insurance won't.

http://www.nolo.com/legal-encyclopedia/why-hoa-needs-sufficient-cash-reserves.html

 

[GT75]

Link to HGVC HOA Statement pamphlet:

https://d1m2ucn09z2f8d.cloudfront.n...ing-Your-Vacation-Ownership-Statement-FAQ.pdf