Question:
Does California have a threshold for the amount the board can transfer from the reserve account for capital expenditures/improvements without at least the majority approval of the homeowners?
The board has requested a complete replacement for the fence instead of repairs which will lower the reserves and potentially result in a special assessment in the next few years. They are pushing the replacement early per the reserve funding and forgoing repair to the damaged fences. They are also looking to replace the wood with vinyl and add new skylights which were not in the reserve funding. Total cost is over $85K. This leaves us with a shortfall of reserves if we need to replace the roof within the next six years.
– Kara
Answer:
Hi Kara,
California currently does not impose a limit for the amount an HOA board may use from the association’s reserve fund. Boards are required to fulfill their maintenance obligations as they appear in the governing documents. They must do this even if it means spending a significant amount from the reserves or depleting the reserves. If you do not believe the replacements or repairs are necessary, it is best to speak to your board. Remember that your HOA board is privy to information that other owners may not, such as the actual condition of the fences, professional opinions, etc.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
