HOA Reserve Funds

Q:My client recently asked me about the HOA reserve funds for her complex. How much money should it contain.
A: Every couple of years, a reserve study should be made to determin the amount needed. For instance-take the total of the repairs or replacements that wood be needed in future years less the amount now in the reserve account.
Determine the usefull life of the assets in years to determin the amount you need to collect each year. Never use a percentage or total amount and just plug in the figure to the bufget.