Reserve fund
The savings account an HOA builds up to pay for big, infrequent repairs to shared property.
The reserve fund is the long-term savings an association sets aside — out of your monthly dues — to replace expensive common-area components when they wear out: roofs, elevators, pools, private roads, and the like. It's separate from the operating fund that pays the day-to-day bills. A healthy reserve means those big projects get paid for without surprise bills; an underfunded one almost guarantees a [special assessment](/glossary/special-assessment) or deferred maintenance down the road. The recommended contribution rate is set by a [reserve study](/glossary/reserve-study), and reviewing it is one of the smartest things a condo buyer can do.