What are the benefits of a Reserve Fund?
The benefits of a Reserve Fund are the following: • Results in a more consistent level of assessments. • Makes the prospect of a special assessment less likely. • Provides more equitable sharing of replacement costs. • Helps to prevent the deterioration of the property thereby maintaining property values. • Allows board members to fulfill their fiduciary responsibility. • Lowers maintenance costs by anticipating repairs, rather than reacting to crisis conditions.
