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What is the average amount of reserves for a small condo association in Chicago?
Wiki User
∙ 14y ago
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.
Wiki User
∙ 14y ago
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