Wood Rot not treated on Reserve Study Schedule

A bit confused. Why would an owner be charged for wood rot for an exterior repair of a town house?

If the CC&Rs provide for 100%, why aren’t you charging that amount? Where other 67% being reappropriated from?

If wood rot is each owners responsibility, why are the units without rot being charged?

Basically it sounds like your Board has levied a special assessment for 33% of the current repair costs and is advising the owners there will be a 100% special assessment for all future rot repair costs. If that is the situation, that’s how you need to present it.

Do I remember correctly that these are townhouses or at least something that isn't separately owned structures on separately owned lots? In some communities like this, there is a less clear cut difference between common elements and personal property. I remember one poster who said his community had detached homes but the association maintained the roofs, and I know of a number of communities in my area where the association handles lawn care on privately owned lots.

Re: the original question, remember that ALL association spending, including for the reserves, is paid for by the membership. Just because the money comes from a different bucket doesn't mean it's coming from a different source.

In this case, the board is admitting that they dropped the ball on preventative maintenance for a variety of reasons - some their fault, some out of their control (*). So they're making an offer to foot part of the bill for something that would ordinarily be owner responsibility, because the repairs may be more costly and owners may have a hard time coming up with the money on short notice. I think that seems reasonable.

(* Loss of institutional memory is a thing in nearly all community associations, and board meeting minutes don't come close to filling the gap. Right now I'm an officer in my condo community. My only function is advising the board on the community's history and on all of the things board members need to know in order to do their jobs properly. Any long serving board member on this website knows how long it can take to learn how to be an effective board member. Training helps a lot, but until a person puts the training into practice and has to sort out difficult issues, they don't really "know" the job.)

You mean like personally contributing out of their own pocket? Otherwise the funds are just the owners prepaid maintenance funds that were allocated to something else.

CC$Rs say wood rot 100% owners to pay for, but HOA organizes repairs that owner then pays. HOA then pays for painting. No wood rot has been dealt with since 2014. Board feels repairs will be larger for some because of Board lack of decisions. So the cost 67% of each repair will be shared by all via Reserves. Owners will pay 33%, one time only.
Going forward all reports of wood rot will be dealt with when reported (like roof repairs) and next wood trim painting will be done on schedule in 3 years.

Your association really, really needs to inspect and repair the wood on a more regular basis than every three or six years. That schedule is crazy. You need to maintain the building every year, not every three years. You now have “actual knowledge” (which is a legal term) that a failure to maintain the building has resulted in damage to the owners, which will constitute further negligence in the future. In my opinion that actual knowledge overrules the theoretical schedule in an inadequate reserve study. Your association also cannot rely on owner input to inform the association. You need to do inspections. Hope this helps.