Reserve fund

A reserve fund is required by law for all HOA's. You can use this fund to pay the costs for planned maintenance. The Improvement of the functioning of Owners' Associations Act has applied since 1 January 2018. This law fulfills this obligation by imposing a minimum annual reservation on the VvE. The minimum annual reservation applies to apartment complexes with houses, including mixed complexes.

To meet the minimum annual reservation, the VvE has two options.

1. The annual reservation is based on an MJOP


  • must not be more than five years old
  • must cover a period of at least ten years
  • to be renewed every five years
  • contains the required maintenance and repair work, the planned renewals, a calculation of the costs associated with those activities and renewals and an even allocation of those costs to the various years
  • must be established by the meeting of owners

2. The annual reservation consists of 0.5 percent of the rebuilding value of the building

The meeting of owners can opt for this option if the VvE does not have an MJOP.