Communal reserve – Article 90 of the Law of Ownership and Other Proprietary Rights defines communal reserve as basic income of a residential building, serving the purpose of maintaining its communal parts and appliances.
Communal reserve is managed by the homeowners of the real estate (the residential building), that is, by the manager chosen collectively by the homeowners in the Management Contract.
Homeowners deposit the reserve onto the account made for this purpose, in accordance with specific annual or perennial management program.
The minimum for communal reserve, as determined by law, amounts to 0.54 % of the value of their special part within the ownership of the property, annually.
The Ministry of Construction periodically publishes data on the standard price of construction and the last data, in application since August 29, 2012 amounts to 6000.00 kn per square meter. Based on this data, the calculated reserve amounts to 2.70 kn per square meter of usable area of the apartment.
Formula for application is (standard price 6000.00 kn) / 12 months = 500.00 kn * 0.54 = 2.70 kn per month.
The decision about the amount of the reserve is made by the majority of the homeowners, based on their owner´s share in usable floor space by square meter, and should not be less than the amount of the standard value, that is less than 2.70 kn per square meter.
Also, it is of value to emphasize that in the case of making a decision to increase the amount of the reserve, the managerial fee does not increase – it stays within the law boundaries.
Narodne novine (*Official Gazette) 100/2012, data on standard construction price