Reserve funds exist so that condo owners do not have to deal with annual assessments that can vary from year to year.
Some jurisdictions do not require that condo corporations maintain reserve funds. Where reserve funds exist, it may not be required that these accounts be adequately funded.
In the absence of monthly condo fees and reserve funds, condo owners would still have to pay to maintain their building and services. Depending on what work is necessary in a given year, assessments could range from $5,000 to $25,000+ per year without the option of spreading out payments over time.
It is easier for condo owners to manage paying a set amount each month than to come up with larger amounts of money at the time when condo building work is required and must be paid for.