HOA false assessment

Hi I would really appreciate any advice on this matter. Our HOA filed with the community insurance for hail damage to our roofs. The insurance company awarded payments by individual address. The odd part is that the HOA did not just disperse the money to the residents. Instead they managed it and had a process for individuals to take a first amount and then after fixing their roof and providing invoices the individual would get the second and final payment. This was their attempt to force people to fix their roofs. I have a very new roof and my insurance amount was not enough to replace my entire roof. We were told that if we didn't have our roofs repaired that we then would not get the second payment. So I took the first payment but did not request the second payment. But now the Board wants the first funds returned for anyone who did not get their roof repaired. And they admit that these funds are going into the general fund and are in no way earmarked for future roof repair. I don't think I owe this money back. I am current in all my payments and have always paid any "voluntary" money for community items. The Board is stating that they will file a lien against the people who do not return the first funds. They are calling the money an assessment, but I don't think it qualifies as an assessment. What is my recourse if they do file a lien? The amount is about $2000.

Is your roof shared with others? When my roof needed replacing on my home, the insurance company acted in a similar way when paying out. I got about half the money up front after paying my deductible. After the job was finished, I received the 2nd half of the money. This was as an individual owner.

The HOA may have had to pay out a deductible to the insurance company in order to receive the roof money too. A HOA's deductible can be up to 20K or more. I can see why they may have put the money in the general fund and divy it out as needed. It's probably so they can keep money in the account due to the steep amount they had to pay for the deductible. The owners who don't have their roofs fixed may then be contributing towards that cost. By taking advantage of the funds for the roof repairs the money is doing what it's supposed to do. Not taking advantage of them money, may mean incurring the expense for making it happen.

Either way, it is an expense for the HOA. Any expenses by the HOA for the owner's behalf may be subject to a fine. I would pay the money back. You didn't use it as intended and it's the HOA's money.

Thanks for the insight. I was looking at this as insurance money to me but if it really is the association's money than I can understand returning it. The situation was handled very strangely and the story changed. Their deductible is low only $2500 but they did pay that and I didn't pay a portion of it. They gave each individual a check, each person handled replacing their own roofs with different contractors.