In Ohio, to avoid litigation related to reserve funding, the choices are clear and the law is simple – adopt a budget that adequately plans for reserves, or obtain a waiver from the ownership. To help accomplish this, we strongly recommend that both condominium and homeowners’ association boards either do a reserve study, share its content with the owners, and budget accordingly or do a reserve study, share its content with the owners, and obtain a written reserve fund waiver each year from a majority of the owners.
So you know that your association needs a reserve study, but it’s tough to know where to start. What type of reserve study do you need? Which reserve study company should you use? For step-by-step guidance check out these articles recently posted on HOA Pulse News Selecting a Reserve Study Company and Setting the Scope of the Reserve Study.
For more detailed information on Ohio’s reserve requirements, visit our article Mandated Reserves and Budgets, Reserves, and the Ohio Requirement for an Annual Ownership Vote if Reserve Funding is to be Waived: The Special Assessment Problem.