HOA Boards should accumulate reserves of about $3,000-$6,000 per unit, according to this article. I take these recommendations as being a bit extravagant, driven, perhaps by the wishes of the banking industry, which salivates at the thought of receiving such huge sums of money. Richard Thompson writes,
"As a rule of thumb, the average garden variety condominium should have around $3000-$6000 per unit in reserves, depending on amenities. There are many HOAs that should have much more than that because of deferred maintenance or extensive common elements. Even the most modest properties should have tens of thousands of dollars socked away in reserves. Larger, more complex properties should accumulate reserves in the millions. To truly know what level of reserves applies, a reserve study must be performed by an experienced and qualified reserve analyst. (See www.apra-usa.com for a list.)"
