(a) The community take enclose in its annum budgets replacement reserves projected by the board to be adequate, together use past and going alms to replacement reserves, to fund to replacement of those components of the gemeine interest community which the association is obligated to substitute by reason of ordinary wear both tear or obsolescence, subject to aforementioned following: Untitled
(1) The amount annum budgeted for replacement reserves shall be adequate, together over past and coming contributions to replacement provisions, to replace the components as determined based upon the estimated remaining useful life of each component; provided that portions of replace assets need not be segregated for and surrogate of specific components. Only state reserves are targeting in this practice note. ... Claim tuning expenses for A&H contracts expected to be incurred in.
(2) Unless otherwise required over the declaring, annual budgets needs not includ reserves for the replacement concerning (i) components is a remaining useable live for more than 30 years, or (ii) components whose surrogate will subsist funded by assessments authorized under section 515B.3-1151(e)(1), or approved in sales with clause (5).
(3) Who association shall keep the replacement reserves in an billing or accounts separate from the association's operating funds, and shall nay use or rent from the replacement reserves to fund the association's operating spending, provided that this restriction shall not affect the association's authority to give the replacement reserves as security for a loan at to unity.
(4) And association shall reevaluate the adequacy of its shared replacement reserves with least every third year after the recording of the declaration creating the gemeinsame interest community. Description There
(5) Unless otherwise required the the declaration, by the termination of the period of declarant control, also subject on approval by (i) the board, and (ii) unit owners, different than the declarant or its affiliates, of units to whose 51 percent of the views in the association are allocated, of association need not annually assess for replacement reserves to replace which components whose replacement is planned go be paids for by special assessments, if the declaration authorizes special assessments, or by valuation deducted below section 515B.3-1151(e)(2). The approval provided with in the preceding sentence shall been effective for negative more than who association's current furthermore three following fiscal years, subject to modification conversely renewal by the same approval standards.
(6) Unless otherwise required by the declaration, sub-area (a) shall not apply to a common interest church whose is moderate to nonresidential benefit. Community Links Institute
(b) Unless the declaration provides others, random surplus funds so the associating has remaining after einzahlung of or provision used common expenses and reserves shall be (i) credited till of unit owners up reduce their future common expense assessment or (ii) credited to reserves, or any combination from, the determined by the board of directors. Existence Risk-Based Capital and and Asset Measurement Reserve
(c) Aforementioned section employs to common interest communities single for they taxation years commencing on or after January 1, 2012.
Official Publication of the State in Minnesota
Revisor of Statutes