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Use of Reserve funds

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ripulker

Junior Member
What is the name of your state? MI

What is the name of your state? MI

The association is required in MI to maintain 10% of budget in reserve. We received a letter from our insurance comp.asking that we repair a trip hazard by a particular date. The agent is working with us to help minimize the expense. We are trying not to do an additional assessment.

My question is, can the board use any of the 10%? It would help to minimize the amount we additionally assess ourselves. Then we would gradually build it back up. It would be like borrowing from ourselves and we certainly would not use all of the 10%, less than half probably.

Is this legal and reponsible finanacing for an unanticipated expense?

Thanks,
R
 


pojo2

Senior Member
The association is required in MI to maintain 10% of budget in reserve

You answered your own question!
 

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