condo fees & reserves

[MA Condo Owner]

What is the name of your state? MA

We are a new condo association and are establishing how much each unit will pay in condo fees. We are unsure how to proceed with reserves. What is a standard monthly contribution to put into a reserve account? Is it based on percent of ownership or a flat fee for everyone? I've heard from my real estate agent that a flat $50 is common in MA but wanted some outside verification.

Some background on the building: it is a six unit building that was insured for $811,000 and is a brand new renovation. The six units are of varying sizes (27% being the largest and 13% being the smallest).

We'd appreciate any thoughts!

 

[MA Condo Owner]

I've just read a MA law firm's website where it stated that a reserve fund is collected only at the time of closing in the form of 2 months fees. It is not an on-going monthly thing.

How is a reserve fund collected?
At the time of the sale to the first unit owner, two months of the current
condominium fee are collected from the Buyer and delivered to the
Condominium Unit Owner's Association.

Has this been other's experience as well? Thanks for your feedback.

 

[HomeGuru]

What is the name of your state? MA

We are a new condo association and are establishing how much each unit will pay in condo fees. We are unsure how to proceed with reserves. What is a standard monthly contribution to put into a reserve account? Is it based on percent of ownership or a flat fee for everyone? I've heard from my real estate agent that a flat $50 is common in MA but wanted some outside verification.

Some background on the building: it is a six unit building that was insured for $811,000 and is a brand new renovation. The six units are of varying sizes (27% being the largest and 13% being the smallest).

We'd appreciate any thoughts!

**A: first order a reserve study then based on that set up a reserve budget.

 

[HomeGuru]

I've just read a MA law firm's website where it stated that a reserve fund is collected only at the time of closing in the form of 2 months fees. It is not an on-going monthly thing.

How is a reserve fund collected?
At the time of the sale to the first unit owner, two months of the current
condominium fee are collected from the Buyer and delivered to the
Condominium Unit Owner's Association.

Has this been other's experience as well? Thanks for your feedback.

**A: a reserve should be collected monthly as part of the monthly HOA fee.