| The board is required to provide for a reasonable reserve in
its annual budget. However, if the association does not have a
reserve requirement in its governing documents, it is possible
for the association to waive the Condominium Property Act's reserve
requirement by the vote of 2/3 of the total vote.
In the event the association does elect to waive all or part
of the reserve requirements, the board must disclose such waiver
in the financial statements of the association and, highlighted
in bold print, in the response to any request of a prospective
purchaser for the information prescribed under Section
22.1.
In cases of proper waiver of the reserve requirements with
proper disclosure, board members and the managing agents are
not liable for damages resulting from the lack or inadequacy
of reserve funds in the association budget. |
