The reserve fund: how much is compulsory and what it is for

Since 2022, every community must hold a reserve fund of at least 10% of its most recent ordinary budget. It is not optional: the Horizontal Property Act requires it.

What it is for

• Urgent conservation and repair works (the boiler that gives up in January).
• Compulsory accessibility works.
• Taking out damage insurance or a permanent maintenance contract.

What it is NOT for

It is not a drawer for balancing the budget or covering running costs. If it is drawn on, it must be topped back up in the following financial year.

How it works out in practice

If your community spends €12,000 a year, the minimum fund is €1,200. It is fed from the dues like any other item — many chairs issue it as a small fixed part of the monthly charge until it is reached.

The usual mistake

Having it "in theory" but spent. In practice, check once a year (at the annual meeting) that the real balance in the account covers the fund. It is one of those things nobody looks at until it is needed — and by then it is too late.