The Santa Clarita fires damaged our properties in 2007

July 09, 2009

By jbherbert

Our homeowners association was paid their insurance claim for the fires that swept through our area in 2007. Several homeowners have not seen any repair to the common area behind their houses for which the claim was paid.

The homeowners were told at a recent board meeting that the association's reserve fund was running low and that most of the insurance money was put into that fund instead of going toward the repair of the common area.

The board told the homeowners that they would slowly fix the area as soon as they started building up the reserve fund.

Is this legal for the board to transfer insurance claim money for damages on our property to a reserve fund and not use the money for the purpose it was given?

Thanks in advance.