condo fees / reserve question...

[monty_que]

Hello! I'm a 1st time condo owner and my condo docs are written in "lawyer speak" which I'm having a hard time translating. Wondering if anyone can help me out...

The condo consists of three owner-occupied units. We each pay $150 a month in condo fees. The other 2 units were bought about a month after I moved in. I've been the guy that collects the condo fee's each month to deposit in our Condo Trust, and I use that to pay the common expenses.

That first month, I submitted my check of $150. The other unit owners gave me checks for $300, citing $150 for the monthly condo fee, and $150 for the "condo reserve". Now I had paid an extra 1 month's condo fee when I bought the place for the reserve, so I figured they were doing the same thing. However, both the other unit owners have been paying $300 a month, every month, citing the confo fee and the reserve. My question is, is that right? I have not been paying an additional funds for any reserve, and our Trust account balance is rapidly growing as our common expenses simply are not that high. The condo doc's say this:

"The Trustees shall at all times establish and maintain an adequate reserve fund for the periodic maintenance of common areas" and "such a reserve fund shall be funded by regular monthyl assessments from regular assessments for common expenses". Maybe I'm just dumb but, huh?

Then there's: "In addition to the foregoing, to ensure that this trust will have funds to meet unforeseen expenditures, there shall be a working capital fund at least equal to 2 months estimated common charges for each unit". Any amounts paid into this fund shall not be considered as advance payments of regular assessments."

That makes it sound like I haven't been paying enough for my condo fees. But then the description of the condo when I bought it said this: "Condo Fee: $150/month (includes master insurance, water and sewer, hot water, and reserve)"

I've never lived in a condo before. I'm paying $150 a month. Am I doing this right? Or do I owe my condo association a bunch of money?

Any help would be appreciated.

Mq

[HUD-1]

If $300 per month is too high, the three of you need to get together, create a budget and agree upon a monthly fee that includes a reasonable reserve for replacement. Based on the age of the building and its components, you need to project when you will have major expenses for roofing, repaving, painting siding etc. Estimate how much these will cost and when they will occur. For example, if replacing the roofing is $10,000 and will be done in 10 years, collect $28 per month from each owner just for the roof. Complete estimates for all major building components. Collect the reserve and place in the bank until you incur some of the major replacement expenses.