Our Association recently set up a roofing fund with the object of replacement of 50 roofs over the next 20 years. This fund is scheduled to produce up to $1,000,000 in the next 10 years. Some in the Association want to invest this money in the stock market. My question is are there laws that limit how Association,s can invest their monies?
Vermont currently has no laws addressing this. However, it is worth checking your association’s governing documents to see if it contains any guidelines when it comes to investing reserve funds. Generally, it is recommended to make low-risk investments that offer the most protection for your capital. Stocks are normally considered volatile and high-risk. If you currently don’t have an investment policy, consider creating one. Here is a resource you might find helpful: https://www.hoamanagement.com/investing-hoa-reserve-funds/
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.