Over funding of Association Reserve Fund

What is the name of your state (only U.S. law)?

Michigan

My Question is:

My condo is located in Rochester, MI. I believe there is a limit on how much of the association fees can be allocated to the reserve fund. We have a very healthy reserve fund on hand and in fact have never had a special assessment for any major improvements because of the monies in this fund. Yet every year an incease results for so called reserve fund building. What are the rights of co-owners on this? These continued increases are making our condos undesirable when trying to sell them. Please advise.

Not sure if there is a limit on a maximum contribution to a reserve fund. Many states have a
required minimum contribution that is usually based on a % of the total yearly revenue.

Reserve Funds are very important as Banks/Lenders look at the available reserves and projected reserve expenditures before granting a mortgage to a buyer of a condo. If the Bank deems the Reserves to be too low then they can deny the mortgage.

You're dealing with a double edged sword as you state the increases to the monthly fees are making your condo undesirable to sell. However, your condo assn. has a great track record in not having special assessments and maintains a healthy reserve fund balance.
Accentuate the positive when marketing your condo to potential buyers.

At the last board meeting you went to were there also any up coming big expenses / repairs like new windows or new roof being planned ?