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You must have noticed that Co-operative Housing Societies (CHS) or Apartment Owners Associations (AOA) collect funds from the members. In a housing society meeting, I asked a fellow member, what is use of reserve fund of housing society. Keep reading to know what I learned.
Need help verifying property documents? Contact experts at NoBroker here.Check out verified properties without paying brokerage money. Only on NoBrokerBefore, I share with you what is building reserve fund in cooperative housing society. You should know what the reserve fund comprises of:
- the entrance fees received by the society
- transfer fees received from the members on the transfer of shares or occupancy rights
- the fees received from the members of the transfer of property of the society or interest in the capital
- donations received by the society
Whats the concept of reserve fund in housing society?According to the model bye-laws, the cooperative housing society sets aside funds for expenditure on maintenance, repairs and renewals of the society’s property. These funds are known as reserve funds. These accumulated funds get forwarded to the next year. Members contribute to reserve funds on a monthly, quarterly, bi-annual or annual basis.
The general body meeting of the housing society decides the amount to be set aside as a reserve fund. It is stated in the Bye-laws that the funds will be used for repairs, service staff fees, common electricity expenses, water charges, maintenance of premises of the society etc. Education & Training Fund, Major Repairs Fund and Sinking funds are other funds collected by the cooperative housing society.
This is all from my end on what is use of reserve fund of housing society.
Read more: How to Calculate Sinking Fund for Housing Society? What is cooperative housing society? Can an associate member be a part of housing society?Your Feedback Matters! How was this Answer?
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What is use of reserve fund of housing society?
Divya
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2 Year
2022-12-22T13:12:51+00:00 2022-12-27T14:12:12+00:00Comment
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