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SusanS9 (California)
Posts: 56
Posted:
If common area is damaged due to director malfeasance (not covered by insurance), is the association allowed to repair the damage using operating or reserve funds? Would members have to vote on the expenditure? But what would a no vote mean if area must be repaired?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Susan,

If the area was damaged due to an individuals action, the Association should be able to bill that individual for the repairs.

If the area was damaged due to a bad decision by the board, then it should be repaired by the Association. Typically this would be what contingency funds are for. I am of the expectation that this is an unexpected repair, therefore, the Reserve Funds should not be used for it unless there is a plan to replace what is taken (special assessment, raise in annual assessments, etc.).

The reason why Reserve funds should not be spent is because they are for expected maintenance and replacement of common area items. The only exception would be if the repair was planned for in the fund but was needed earlier than expected.

Your governing documents should identify if a membership voted is required or not. If they are silent and davis-sterling is silent, then it would be a board level decision.

Tim
SusanW1 (Michigan)
Posts: 5,202
Posted:
What does malfeasance mean? the board neglected some plantings?

Can you explain?
JohnB26 (South Carolina)
Posts: 1,569
Posted:
non-feasance: not performingg one's duties

mis-feasance: committing errors by virtue of one's ignorance while performing one's duties

mal-feasance: knowingly and/or willingly not performing one's duties and/or committing knowing and/or willful actions against the rules, codes, regulations, and/or laws

ps. the BOD's 'D&O' insurance will only protect against mis-feasance (if you don't believe this, read your fine print CAREFULLY)

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