Q.Our 10 year old clubhouse apparently has some settlement problems that started several years ago. No Boards had done any study of the cause until last Fall. It is going to cost about $35,000.00. They say we do not have money in reserve to take care of this expense. Is the board of directors responsible for failure to fund proper reserves? Is the Board liable to the other members?
A.It appears that something major is occurring with the Clubhouse the significance of which could not have been reasonably anticipated until a couple of years ago. Of course, an earlier study of the problem would have been appropriate and may have allowed for collection of funds over a period of a couple of years to remedy the problem. Continue Reading Reserves