Section 4. Damage and Destruction
FCHOA Bylaws - Revision Date: 2022-05-20
(a) Immediately after damage or destruction caused by any covered peril, the Board, or its duly authorized agent, shall proceed with the filing and adjustment of all claims arising under such insurance and obtain reliable and detailed estimates of the cost of repair or reconstruction of the damaged or destroyed properties. Repair or reconstruction, as used in this paragraph, means repairing or restoring the Development to substantially the same condition in which it existed prior to the fire or other casualty.
(b) Any damage or destruction to improvements in the Common Area shall be repaired or reconstructed unless at least two-thirds (2/3) of the membership of the Association shall decide within sixty (60) days after the casualty not to repair or reconstruct. If for any reason either the amount of the insurance proceeds to be paid as a result of such damage or destruction, or reliable and detailed estimates of the cost of repair or reconstruction, or both, are not made available to the Association within said period, then the period shall be extended until such information shall be made available; provided, however, such extension shall not exceed sixty (60) days.
(c) In the event that it should be determined by the Association in the manner described above that the damage or destruction of the Common Area shall not be repaired or reconstructed and no alternative improvements are authorized, then in that event the property shall be restored to its natural state and maintained by the Association in a neat and attractive condition as an undeveloped portion of the Common Area.
(d) If the damage or destruction for which the insurance proceeds are paid is to be repaired or reconstructed and such proceeds are in excess of such costs, or it is determined that such damage or destruction will not be repaired in the manner described above, any unused proceeds shall be retained by the Association and placed in one of the Capital Reserve Fund accounts of the Association.
(e) If the proceeds from insurance are not sufficient to defray the cost to repair or reconstruct the damage or the destruction sustained, the Board may, without the necessity of a vote of the members, levy a special assessment against all Owners. Additional assessments may be made in like manner at any time during or following the completion of any repair or reconstruction.