How Much Money Does An HOA LEGALLY Have To Have In Reserve? Or Recommended?

[countryboyjoe1]

What is the name of your state? California
Hey everybody, I'm the treasurer of my tiny condo association (only 6 units!). One of the issues that goes around every year for us is just how much money should we have in reserve. I've heard vague statements of the State having laws in place requiring certain percentages of value as guidelines, but nobody has ever produced any actual documents with solid statements or any real numbers. It's often just used by other board members as a 'boogeyman' type insinuation for an excuse to raise our yearly HOA dues. My question is, do such laws really exist in Ca? I've searched online and found nothing. I'm sure consulting an attorney who's knowledgable in this area would probably help, but as our association is all about saving money I thought I'd consult a free avenue first.
So anybody have any experience with this?
Anybody have a link to an actual California State Law website showing the state regulations?
Any help would be GREATLY appreciated! Thanks, JoeWhat is the name of your state?

[nextwife]

A properly budgeted association should have a long term repair/ replacement schedule, based upon the expected functional obsolescence of the various mechanicals: when the roof will need replacing, the gutters and downspouts, the asphalt surfaced and lines repainted, the average annual grass cutting, tree trim and maintenance, such as spraying, snow removal if applicable, mudjacking any sunken sidewalk slabs, etc. Plus common area insurance. The cost of each anticipated eventual repair/replacement should be annualized and an appropriate reserve established to cover each as they come up, plus the monthly fee should cover the annual cost of running the place.

[HomeGuru]

Originally Posted by countryboyjoe1

What is the name of your state? California
Hey everybody, I'm the treasurer of my tiny condo association (only 6 units!). One of the issues that goes around every year for us is just how much money should we have in reserve. I've heard vague statements of the State having laws in place requiring certain percentages of value as guidelines, but nobody has ever produced any actual documents with solid statements or any real numbers. It's often just used by other board members as a 'boogeyman' type insinuation for an excuse to raise our yearly HOA dues. My question is, do such laws really exist in Ca? I've searched online and found nothing. I'm sure consulting an attorney who's knowledgable in this area would probably help, but as our association is all about saving money I thought I'd consult a free avenue first.
So anybody have any experience with this?
Anybody have a link to an actual California State Law website showing the state regulations?
Any help would be GREATLY appreciated! Thanks, JoeWhat is the name of your state?

**A: search the condo law of CA. Even if the law does not require, my take is the HOA should reserve 100%.