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Please pardon the long post but would like to offer the most detail on my
concern and request your advice.
I'm a recently elected treasurer of a two year old 350 home POA in South
Carolina and I'm very concerned about a few new policies implemented by the
finance committee and board members.
Recently two expenses were authorized and paid from our reserve fund. The
first was a five-year termite bond policy for our clubhouse ($650.00). The
second was for aeration of the grass areas of our common grounds ($1000.00).
Future plans include improving the appearance of a retention pond and
drainage improvement in an area of the complex, both of which would be paid
from the reserve
My questions to an of you who can or will offer advice are:
1.. Is it correct and/or legal to pay for these types of expenses out of
the reserve fund?
2.. Do we jeopardize our tax status with the IRS?
3.. Are the board members and particularly myself as treasurer setting
ourselves/myself up for a lawsuit?
Please offer any help or suggestions or educated opinions. There is a board
meeting on the 21st at which time I'd like to back up my concerns about
this practice. OS far they have fallen on deaf ears. Thanks for you help.
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Reserve Fund Useage
