Question:
Our HOA reserve account is held in a money market account with 3.4% interest. We are in Florida. Can we take this interest from the reserve account to utilize in our upcoming budget to reduce our HOA costs for next year? If it must remain in our reserve account, can we use it toward our fully funded reserve requirements for the upcoming year? Again, reducing our budget for the HOA fees.
– Elaine
Answer:
Hi Elaine,
Check your governing documents to see what you are allowed to do with the interest. Most HOAs will put it toward the operating fund or back into the reserve fund, which are the two options you have provided. However, you should act within the scope of authority that your governing documents stipulate.
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