[ Blog/News ]
How you handle your HOA reserve funds really makes a difference in the successful running of your association. Managing HOA reserve funds is  important for the longevity and future investments of your association.

As a member of the board, it is your responsibility to stay on top of your reserve fund making sure it is regulated well and in the community’s best interests.

Understand When to Use Your Reserves

Is it a reoccurring expense?  Is it a capital improvement? A reserve fund is savings set aside for common area maintenance, repairs, replacements and unexpected repairs not covered by insurance.

HOA Reserve Fund Laws

Can an HOA invest money?  It depends on what your state laws are and your governing documents.  Some states have restrictions on which investments HOAs are permitted to take advantage of.  Always exercise prudent fiscal management when investing.

Your Investment Policy in the Bylaws

Check your governing documents, as they may include a policy on investments regarding your reserves. Every homeowners association should have an investment policy laid out in the governing documents.

It is very important to consider the following in order of its priority:

  • Safety above all else
  • Liquidity is a must
  • Consider yield last
Investing HOA Reserve Funds

HOA reserve funds don’t have to sit idly by.

Columbia Bank offers the Demand Deposit Marketplace (DDM), a sweep account that will provide FDIC Insurance up to $25 million in deposits. Funds over a target balance are swept out daily to the DDM account where funds will be invested amongst various FDIC insured financial institutions in $250,000 increments.

You will receive a monthly statement listing the names of the financial institutions and the dollar amount that is invested with each institution. This program will satisfy the HOA investment guidelines and provide you the safety, convenience and availability to your funds as you need them. End Of Article

By Columbia Bank

By Columbia Bank

Chapter Happenings Sponsor, September 2021

Columbia Bank works with management companies, associations and their Boards to develop appropriate lending and treasury management solutions.

Jill Jones, Lender jonesj@columbiabank.com
Becky Kost, Deposits rkost@columbiabank.com
  • Newman HOA CPA - Banner Ad
  • Pody & McDonald, PLLC - Ad
  • Morris Management, Inc. - Banner Ad
  • Porter Construction Inc - Building With Integrity - www.porterci.com
  • Rafel Law Group - Banner Ad
  • Barker Martin
  • The Copeland Group - Banner Ad
  • Condominium Law Group, PLLC - General Counsel & Collection Services - Partners Ken Harer & Valerie Oman - Phone: (206) 633-1520 Website: www.condolaw.net
  • HUB International NW - HOA And Condo Solutions - Web Ad
  • Accurate Reserve Professionals - Ad

Search WSCAI


Search Business Partners Directory


Diamond Sponsors

  • ServPro Of Seattle NW - Logo
  • Newman HOA CPA - Audit & Tax - Logo
  • Transblue - Logo
  • SageWater - Logo
  • Association Reserves WA - Logo
  • CAU - Community Association Underwriters - Logo
  • Superior Cleaning & Restoration - A COIT Service Company - Logo
  • Rafel Law Group PLLC - Logo
  • CIT - Community Association Banking - Logo
  • RW Anderson Services - Logo
  • Columbia Bank - Logo
  • HUB International NW - Logo
  • Agynbyte - Logo

Chapter Magazine

Journal May 2022

May 2022 Issue

Journal Advertising Partners:

  • Newman HOA CPA Audit & Tax
  • CIT Group Inc. - Logo
  • Rafel Law Group PLLC - Logo
  • The Copeland Group - Logo
  • Bell-Anderson & Associates - Logo
  • Community Association Underwriters - Logo
  • Ruff Construction - logo
  • Charter Construction - Logo
  • Association Reserves WA - Logo
  • SSI Construction
  • Sagewater
  • Columbia Bank - Logo
  • Pacific Building Envelope, Inc - Logo
  • RW Anderson Services - Logo
  • Pacific Engineering Technologies, Inc - Logo
  • Ryan Swanson & Cleveland - Logo

Ryan Swanson - Jo Flannery - Flannery @ryanlaw.com