What is included in the duties of a Board of Directors regarding reserve funds?

The duties of a Board of Directors in the context of reserve funds primarily involve the financial oversight and management of funds set aside for future large-scale expenditures. By allocating funds for major common area repairs, the Board ensures that the property retains its value and remains in good repair. Reserve funds are specifically intended for significant capital expenditures that may arise over time, such as roof replacements, landscaping, or other substantial maintenance that supports the overall integrity of the property.

This responsibility includes not only planning for these expenses but also ensuring that there are adequate funds available when needed. Proper management of reserve funds demonstrates to the community—comprising the unit owners—a commitment to maintaining the property and being fiscally responsible.

Other choices provided, such as allocating funds for marketing strategies or managing individual unit sales, do not directly relate to the specific duties usually associated with reserve funds. Additionally, estimating fund collection rates falls outside the direct responsibilities tied to reserve fund management, as it focuses more on revenue collection rather than expenditure planning and upkeep of common property. Therefore, allocating funds for major common area repairs is pivotal to maintaining the overall health and appeal of the property.