Developer and Reserve Fund

Started by DavidC1 • 1 replies • 1977 views

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DavidC1 (Virginia)
Posts: 4

Posted:

Hi All,

We are a small community of 18 home and are nearing time to assume duties of the HOA from the developer and I have some questions.

First, it appears the developer made a 10k contribution to the reserve fund, and then used the funds for general budget items. Is this proper?

Second, is the developer required to have a reserve fund plan? Or is it proper to just leave that up to the new residents?

Third, where can I go in Virginia to find out what the legal obligations of the developer are concering the HOA, reseve fund, etc.

Thanks

Dave C.

CharlieT (Texas)
Posts: 12

Posted:

I would suggest you go the state site on statutes. I believe you'll find your answer there if reserves are required. In Florida a reserve account is not required for Homeowner Associations. Condo Associations require it unless the homeowners vote to opt out of this requirement.

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