Do We Continue to Make Reserve Contributions if Our Reserves are Surplus?
February 5, 2019
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This is a very common question and the idea of “Percent Funded” is still confusing to many associations. So before we answer the question, let’s define what it means to be 100% funded.
To be 100% funded means as of a particular point in time the Association has Reserve funds on hand exactly equal to the deterioration of its Reserve components. It does NOT mean that the Association has 100% of the funds needed to repair and replace all the components in the Reserve Study.
