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Condominium associations save money in reserve fund accounts to replace major real estate components, such as roofs, windows, exterior doors, asphalt, club house and so forth, that all the owners own in common.
The amount of money in reserves depends on at least these variables:
- The age and accuracy of the most recent reserve study, which details the useful life and replacement value of each major component
- The ability of owners to successfully participate in a special assessment, which would make up the difference between what is available in the reserve funds and the cost of the component replacement during the year the work takes place.
Best practices dictate that most owners appreciate contributing regularly to reserves, so that huge, burdensome special assessments can be avoided.
What else can I help you with?
What is minimal reserves in the Illinois condominium law?
The Illinois condominium law -- below -- uses the language "reasonable reserves" which leaves the dollar amount or minimum up to wide interpretation. See Chapter 9: Budgets and Reserves. Unfortunately for those of us who live in common interest communities, the law and best practices are not in sync on these matters. Ideally, an association would fund reserves so that the chances of a special assessment to pay for major repairs would be in the 1-2% range. This would be a best practice.
What is the present Global reserves of Gold?
Present Amount of Global Gold Reserves
Why do commercial bank lend out the excess reserves?
They dont loan out their excess reserves. They only have excess reserves because they dont have loan demand from qualified borrowers and the marginal return from an average loan is greater than the interest paid on the excess reserves. IE they have to receive a marginal return of X amount above .25% they now receive on their excess reserves from a borrower SO 1. They have to loan demand 2. Qualified borrower 3. Net marginal return of higher than the amount of interest they receive on their reserves.
What is Mississippi average temperatures rainfall information?
mississippi's avklasjfijflk just same amount as chicago.
Amount of people in the UK military?
There are currently 191,730 regulars, 37,600 reserves and 174,800 regular reserves.
How do i find the excess reserves?
To find excess reserves, first determine a bank's total reserves, which includes both required reserves and any additional reserves held. Then, identify the required reserves, calculated as a percentage of the bank's deposits based on regulatory requirements. Subtract the required reserves from the total reserves; the remaining amount is the excess reserves. Formulaically, it can be expressed as: Excess Reserves = Total Reserves - Required Reserves.
The amount of a fossil fuel that can be extracted at a profit using current technology is called a?
Fossil Fuel Reserves-Reserve-The amount of fossil fuel that can be extracted for profit•Methane Hydrates-New energy source found in the oceanANSWER: Reserves
What is the maximum amount the bank can lend?
bank can lend amount equal to its excess reserves
What continent has the least amount of copper?
Antarctica has the least amount of copper reserves compared to other continents.
What is a reserve rate?
The amount of funds that banks must hold in reserves
Is it legal to assess to rebuild reserves in a condo association?
Yes, it is legal to assess monies for reserves; a special assessment may be required.You can read your state condominium law covering reserve accounts, and then read your governing documents concerning assessments and special assessments.Apparently, your association had reserves funded at some level, then either spent the reserve dollars for their intended purpose, or borrowed from the reserves fund.When reserves are spent for their intended purpose, the level of annual funding anticipates the useful life of the assets being saved for. For example: when the assets' replacement exceeds the amount of funding available, the next year's assessments will probably show an increase in reserve funding, so that the next component to be replaced can be fully funded.When the board borrows against reserves, usually a repayment plan and schedule are required by state law, so that reserves are maintained at appropriate levels.It's impossible to tell from your question how the reserves were spent.You are owed an explanation from your board so that you understand the assessment being levied against your unit.
What is the difference between retained earnings and reserve?
Retained earnings are current year profit and Reserves are allotted the amount from last year profits as reserves.
