§ 4177 Association Reserve Funds

• •Reserve accounts are savings for big fixes or upgrades in shared places like apartment buildings.
• •The money in these accounts is for things the association (like a homeowners' group) is responsible for fixing.
• •If the building gets money from a lawsuit or settlement for bad construction, that money also goes into this account.
• •The lawsuit money must be kept separate from the regular savings for repairs.

A big apartment building has a leaky roof that needs to be fixed in a few years.

The homeowners' group saves money in a reserve account to pay for the roof repair later. If they win money from a lawsuit because the roof was built poorly, that money also goes into the account but is kept separate from the regular savings.