River Run Homeowners Association

Reserve Fund

Apr 04, 2009

As and if necessary, a portion of the Regular Yearly Assessments shall be set aside or otherwise allocated in a reserve fund for the purpose of providing repair and replacement of the Common Area, and other capital improvements which the Association is required to maintain.

WHAT IS A RESERVE FUND?
According to Article V of the Declaration, it is a portion of the Regular Yearly Assessments. A Reserve Fund is not a Assessment, but a portion of your Regular Yearly Assessments. In other words, left over money at the end of the year, from your Budget goes into a Reserve Fund. While it is in the Reserve Fund the money is back in the hands of the Members. It takes Members Approval before the money can be spent. The Board of Directors can not spend this money once in the Reserve Fund. This makes the Board of Directors more accountable for your Regular Yearly Assessment.

With that said, your Reserve Fund has been thrown out the window by the people in control of the Association. We the Members are in control of the Association now, are we going to allow our Board of Directors to throw over $50,000.00 out the window this year alone? Or, do we want that money put in our Reserve Fund, back in the members hands? There should be money put in the Reserve Fund each year.

Our Board of Directors said at the March Meeting that Beazer gave the Association $20,000.00, because the Association ran out of money last fall. Can you believe that???

You can find this in your January 25, 2005 meeting minutes.

Questions:
Q. What happens to any axcess money in the community?
A. The Association is a "not for profit" entity and any monies collected through annual dues must be spent within the community.

Q. How much money has carried over from 2004 to 2005?
A. Approximately $11,000.00

This means $11,000.00 should have been put in the Reserve Fund in 2005. What happen to that money???