HOA with holding insurance proceeds intended for restoration of damage to units

What steps should be taken when our HOA has decided to pay out the proceeds of the insurance claim approved funds received for damaged units in three parts rather than in one check? (The damage to the units was cause by the neglect by the HOA to the outside of the units, this is why the HOA's insurance is paying.) The insurance has sent the check to the HOA, as they are the insured but they are to distribute the funds among the units involved. However, the treasurer has decided she will not pay out as the insurance stated but rather pay out in three separate installments to each unit when she sees fit. In other words, she states she will give us one third now, then she will decide when to give us the second third payment , then the final third payment. This makes it impossible to schedule work and will hold up contractors to order supplies and do the work. This is causing alot of stress and strain on owners as this entire ordeal has been going on for three months already. What right does she have to control how our units are paid and worked on? I hope this makes sense. Appreciate any thoughts.

what happens if the HOA distributes 100% and some owners fail to have the repairs done and spend the money on something else?

Thank you for your reply. That is true and we feel that the treasurer is mishandling all funds, not just this. This claim was to be distributed to each unit immediately upon receipt but the treasurer thinks this is the HOA's money. It is insurance money meant for individual owners to repair their units. Very Frustrating.

This is a reimbursement and the owner should have to provide proof the repair was completed or a signed contract for the repairs to be completed.

Adding the damage in each unit is likely not identical and some units will require more funds than others. For book keeping, it is a poor practice to have any checks being issued to owners without some documentation.

Glad to hear it.