Richard White: Reserves help associations, owners plan for the future
Q. I live in a small HOA. In November our board approved the budget for 2010. It included funds for painting, but the painting is not scheduled for three years. The funds are being placed in a line item called reserves for the use of people who are not owners as yet.
Our turnover shows that we will have 30 percent new owners when the painting is scheduled. I read FS 720 about the budget should be each year close to zero dollars.
If we are not painting for three years, the reserves should not be collected as the money can be misused and maybe squirreled away as it cannot be controlled.
Am I correct that this is illegal to force me to pay for future expenses?