Question:
One of our owners had major roof leaks which caused damage to the interior of his unit. Repairs were paid from Gen Maintencece & Repairs in the Operating account. A board member now wants to move those expenses from operating to reserves. She states that since the damage was caused by a leaking roof, it should come from the reserve budget for roof replacement. Is this correct? Our property manager has indicated that it should be an operating expense and there is no provision in reserves for general maintenance and repairs.
– Lorraine
Answer:
Hi Lorraine,
According to the Davis-Stirling Common Interest Development Act Section 4177(a), reserve accounts are the funds the board has “identified for use to defray the future repair or replacement of, or additions to, those major components that the association is obligated to maintain.”
Whether the reserves are used for the roof repair may depend on whether or not they fall under the major components defined in this section. Furthermore, the governing documents may outline whether or not the reserves may be used for homeowner roof repairs. You may also refer to the community’s reserve study as it may offer insights on how roof repairs should be handled. For further guidance, kindly consult a lawyer.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
