AZHOC - Arizona Homeowners Coalition
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1 Response

  1. dennisl

    Susan,

    Unless the board has established their own rules for the use of the funds in the reserve or for the process of adding or removing any item from the Reserve (Capital) plan. Which by the way should be the way that all of these communities operate but none do to my knowledge. The board is free to do anything with the reserve fund and the overall capital plan as they see fit. Some community CC&R’s do place some limits on the amount the board can spend on any project without community approval, but these are clearly the minority and few and far between. Look to your specific CC&R’s for further guidance. I actually attempted to establish standards in state law for the use and management of reserve funds and long term capital planning in 2016, but that proposal never saw the light of day based on the resistance from the HOA trade groups. If anyone would like to see what a good capital planning and reserve fund guideline looks like , just drop me a note and I’ll send it to you directly.

    Dennis

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