KathleenS (Massachusetts)
Posts: 1
Posts: 1
Posted:
Hello-
I am the HOA President of a 4-unit townhouse complex that is just over one year old. We are faced with several exterior problems, due to faulty construction and a dishonest builder. We are faced with over $3000 in repairs to a (seemingly!) new roof and an improperly graded parking lot. Other members of the HOA would like to clean out the already small reserve account (which is at <$2500 currently)to avoid out-of-pocket expense. After the one year warranty expired, the HOA decided not to pursue legal action against the builder, under the assumption that the repairs may require out-of-pocket expense. Now that we are aware of how much the repairs will be, many homeowners are saying they cannot afford the out-of-pocket expense. I am concerned that wiping out such a small reserve account is a poor finiancial decision, and will leave us in a terrible situation. Any thoughts?? Are there state laws that require a minimum contribution to a reserve account? Thank you- KAS
I am the HOA President of a 4-unit townhouse complex that is just over one year old. We are faced with several exterior problems, due to faulty construction and a dishonest builder. We are faced with over $3000 in repairs to a (seemingly!) new roof and an improperly graded parking lot. Other members of the HOA would like to clean out the already small reserve account (which is at <$2500 currently)to avoid out-of-pocket expense. After the one year warranty expired, the HOA decided not to pursue legal action against the builder, under the assumption that the repairs may require out-of-pocket expense. Now that we are aware of how much the repairs will be, many homeowners are saying they cannot afford the out-of-pocket expense. I am concerned that wiping out such a small reserve account is a poor finiancial decision, and will leave us in a terrible situation. Any thoughts?? Are there state laws that require a minimum contribution to a reserve account? Thank you- KAS