QHRRP 9000-525

Sources of MRR Reserves Funds

 

Review/update responsibility
 Finance
Revision
 14 Oct 2024
Reference
 CCRE IV, Section 4.10

Florida Statute 720.303
Annual assessments
 MRR Annual Assessments are the primary source of funding the MRR Reserve- Road System and the MRR Reserve-Other and supplement the funding of other MRR Reserves as required. MRR Assessments may be levied as a single payment at the beginning of the year or as quarterly payments.
Special assessments
 MRR Special Assessments may be levied to meet MRR Reserves cash needs when: actual MRR expenditures significantly exceed budgeted or projected costs, there are unforeseen repairs/replacements which were not included in the MRR plan, or actual MRR revenues are significantly below budget. The need for MRR Special Assessments is minimized by both maintaining MRR Reserve balances and the provision for intra-MRR reserve loans (as specified below).  MRR Special Assessments may be levied at the beginning of the year or at any time during the year.
Lagoon assessments
 Lagoon System Assessments (LSA) paid by Harbor Lot owners and Marina slip renters fund a portion of the MRR Sub-Reserve – HLD.  A portion of the annual MRR Assessments paid by all property owners also funds the MRR Sub-Reserve – HLD.
Funding fees
 The following Fees fund MRR Reserves as specified.

  • MRR Contribution Closing Fees paid by buyers of homes and lots at time of closing fund the MRR Reserve – Road System and MRR Reserve – Other.
  • Construction Impact Fees (CIF) paid by contractors and homeowners for new home construction and major renovations are used to fund the MRR Reserve – Road System
  • Marina Slip Fees funds the MRR Reserve – Marina.
Excess cash
 Excess Operating Cash may be used to fund the MRR Reserves consistent with the ATCF policy and regulatory requirements for Association membership approval to retain earnings.
Interest earned
 Interest earned on MRR Reserve Funds will be credited to each MRR Sub-Reserve based on its percentage of the total MRR funds and the total interest realized for MRR funds. Should the duration of an accrual (e.g. Marina and Road System Reserves) support the investment of funds in longer term instruments that provide substantially higher yields, the interest from these investments will be credited to the account for which the funds were invested.
Intra-fund loans
 MRR Intra-fund Loans may be used to fund specific sub-reserves (such as the 2012 loan from the MRR Reserve – Road System to the MRR Reserve – Marina).  All such loans must be made consistent with ATCF policy which also specifies loan repayment criteria.  Transfers of funds between MRR sub-Reserves where…

  • the primary source of revenue is the Lot Owner MRR Annual Assessment and
  • lot owner MRR assessments [Annual or Special] are the only source of assessment funding are not considered inter-fund loans (e.g., transfers between the MRR Reserve – Road System and the MRR Reserve –Other funds).