How Can HOAs Use Reserve or Settlement Funds?

Boards in need of cash may want to use cash in the reserve accounts or from legal settlements, but there are important restrictions.

§6150 – Pre-Litigation Notice to Members

Not later than 30 days before the filing of any civil action by the association against the declarant or other developer of a common interest development for alleged damage to […]

§6100 – Resolution Notice to Members

As soon as is reasonably practicable after the association and the builder have entered into a settlement agreement or the matter has otherwise been resolved regarding alleged defects in the […]

§6000 – Complaint Prerequisites

Before an association files a complaint for damages against a builder, developer, or general contractor (respondent) of a common interest development based upon a claim for defects in the design […]

§5520 – Litigation

When the decision is made to use reserve funds or to temporarily transfer moneys from the reserve fund to pay for litigation pursuant to subdivision (b) of Section 5510, the […]

Chapter 11. Construction Defect Litigation (§6000-§6150)

§6000 – Complaint Prerequisites §6100 – Resolution Notice to Members §6150 – Pre-Litigation Notice to Members