Condo reserve fund: legal obligation, amount, and use

Since the 2014 ALUR law, most French condos must set up a reserve fund. Amount, contribution, and conditions of use — the full picture.

Since the 2014 ALUR law, setting up a reserve fund is mandatory for the vast majority of French condos. This fund is meant to anticipate large future expenses — facade renovation, roofing, elevator — without having to ask co-owners for a sudden lump-sum payment.

Who is affected by this requirement?

All condos with more than five units are affected, except those whose technical audit shows no work needed within the next ten years, or new condos under five years old.

What is the minimum reserve fund amount?

The annual contribution must be at least 5% of the condo’s approved budget. The general meeting can vote for a higher amount if upcoming work justifies it, particularly based on the multi-year work plan.

What can the reserve fund be used for?

Amounts paid into the reserve fund are attached to the unit, not the co-owner: they stay with the condo even after a sale. They can only fund actual construction or renovation work, not routine maintenance expenses.

• Mandatory work (compliance, safety).
• Work approved by the general meeting (facade renovation, roofing, insulation).
• Technical studies ahead of work (diagnostics, energy audits).

The board’s role in tracking the fund

The board makes sure the contribution is actually collected every year and that the fund’s balance appears clearly in the accounting documents shared with co-owners. It is useful to rely on the multi-year work plan to anticipate needs and, if necessary, propose raising the contribution.

CoproHarmony helps the board track the reserve fund alongside the annual budget and the work plan, to prepare upcoming decisions with confidence.