SharonB6 (Pennsylvania)
Posts: 70
Posts: 70
Posted:
I need some help! Our development is in a mess. Our Builder declared bankruptcy 2 years ago and might just climb out of it soon. To make a LONG story short we have discovered some questionable checks in the Master Association Account that is still administered by the Builder.
I have all the proof. It shows that the builder took out an insurance policy for $7000 for the property about 8 months before the HOA was formed and about 9 months before the first house was built. Anyway 1.5 years later the builder reimbursed themselves out of the Master Association for this policy. Now just for FYI.. it clearly states without question that at the end of each year if the Association has a shortfall of fund for the bills the Declarant will be responsible. ALSO I found out that our current insurance bill is based on the Homes in the development and now it only costs around 3000!!
So do you think the builder had the right to reimburse themselves for that insurance check? We feel that the insurance was a building expense not an HOA bill. In my opinion the max amount they could reimburse themselves for was from any dues the collect during that particular year. which was net to nothing because only a handful of homes had been closed that point.. What makes it even more fishy is the time they reimbursed themselves is when they were struggling to stay in business.
I have all the proof. It shows that the builder took out an insurance policy for $7000 for the property about 8 months before the HOA was formed and about 9 months before the first house was built. Anyway 1.5 years later the builder reimbursed themselves out of the Master Association for this policy. Now just for FYI.. it clearly states without question that at the end of each year if the Association has a shortfall of fund for the bills the Declarant will be responsible. ALSO I found out that our current insurance bill is based on the Homes in the development and now it only costs around 3000!!
So do you think the builder had the right to reimburse themselves for that insurance check? We feel that the insurance was a building expense not an HOA bill. In my opinion the max amount they could reimburse themselves for was from any dues the collect during that particular year. which was net to nothing because only a handful of homes had been closed that point.. What makes it even more fishy is the time they reimbursed themselves is when they were struggling to stay in business.