Question:
What are your HOA experiences with investing some portion of your Reserve funding? We’re considering this (in State of Ohio), and weighing against simply leaving funds in a normal interest-bearing savings now that rates are rising. Assumptions are that our risk tolerance is low and we would only invest a portion in order to keep a majority of funds liquid in case of emergency need. Any advice or experience with this is appreciated.
– Chris
Answer:
Hi Chris,
For condominiums, Section 5311.081 of the Ohio Condominium Act grants boards the power to “invest excess funds in investments that meet standards for fiduciary investments under Ohio law” unless otherwise provided in the declaration.
When investing reserves, it is always important to consider liquidity and safety. You must be able to liquidate the investment with relative ease in the event of an emergency. It should also be put into safe investments with no risk. Here is an article you might find useful: https://www.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
