Funding condominium reserves
To receive the Davis-Stirling newsletter click here. Enter your e-mail address at the bottom of the page to sign up.A reader asks: When 100% funding is referred to, what exactly does it mean?
Our reply: The definition of 100% funding is confusing to many people. If your reserve study states that you need to replace your roof in 10 years at a cost of $100,000, "fully funded" does not mean that you have $100,000 today. It means that you have $10,000 in the bank this year, $20,000 next year, $30,000 the following year, and so on until you have $100,000 on year 10 when the roof is scheduled for replacement.
- Adrian J. Adams, Esq. ADAMS & KESSLER LLP
posted by SFResidence.com @ 2:42 PM
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