§ 4178 Reserve Fund Requirements

• •The law says that a group (like a homeowners association) must save money for big fixes or replacements of things they are responsible for, like roofs or roads.
• •The amount of money they need to save is based on what they think it will cost to fix or replace these things in the future.
• •This money must be available when they need it, not just when they feel like saving it.

Imagine you live in a neighborhood with a shared park that everyone uses. The park has a playground, a pool, and a clubhouse.

The neighborhood group must save money to fix the pool if it breaks, repaint the clubhouse when it gets old, or replace the playground slides when they wear out. They can't wait until the pool is broken to start saving; they need to have the money ready when the problem happens.