Question:
Backflow preventer installation is required. Can we use reserve funds to pay for it or do we have to have a special assessment? Our management company says we can only use special assessment funds. Is that correct?
– Cherish
Answer:
Hi Cherish,
According to the Davis-Stirling Common Interest Development Act Section 5510(b), the board shall not expend funds designated as reserve funds for any purpose other than the repair, restoration, replacement, or maintenance of, or litigation involving the repair, restoration, replacement, or maintenance of, major components that the association is obligated to repair, restore, replace, or maintain and for which the reserve fund was established. If the backflow preventer installation falls under these categories, then the HOA may use the reserve funds.
Kindly also review the governing documents to verify what the reserve funds may be used for and if the installation qualifies. You may also ask the management company why they recommend levying special assessments.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
