Condos are required to have two different condominium bank accounts: The Operating Fund and the Reserve Fund.

The Operating Fund is meant for day to day spending for the condominium. This includes small repair jobs, staffing, administration, utilities, and any routine contracts for services around the property, such as landscaping, snow removal, security, parking enforcement, or any others.

The Reserve Fund is meant for "Major Repairs and Replacements" in the condominium. These would be larger projects such as renovating the elevators or corridors, upgrading the camera system, or replacing the roof. Smaller jobs can also be paid out of the Reserve Fund, as long as they are for a "major repair or replacement" and they meet a minimum dollar threshold set by the condominium. For example, a new balcony waterproofing membrane may be paid out of Reserve even if the cost is only a couple thousand dollars, since it is still a "major repair", and the building's threshold is $1,500. While there is no exact science to where each expenditure should be placed, there should be a policy in place at each condominium to ensure consistency.

The amount of money that is put into the Reserve Fund is determined by the Reserve Fund Study, which is performed by an engineer every three years.