What is Association Reserves?

Association Reserves are funds set aside by homeowner associations (HOAs), condominium associations, or other community associations to cover the costs of major repairs and replacements of common area elements, such as roofs, elevators, or pools. These reserves are distinct from operating funds, which cover regular, day-to-day expenses. Properly funding reserves helps associations avoid large special assessments and ensures that property values are maintained. Reserve studies are often conducted to estimate the amount of money needed over time and guide the association in setting aside adequate funds each year.