I am the owner of one unit in a two unit fee simple condo association in NJ and we have a master insurance policy that covers both units. Both condos were damaged by a fire and we received an insurance settlement. The settlement associated an amount to cover damage in each unit. We both have mortgages on our units through a bank. My bank withheld all of the funds that were allocated for my unit to be repaired and they have been sending checks to our contractors and everything has been fine.
The other unit did not have their bank involved and the money that my bank did not withhold was written to the association and the other unit owner cashed that check. They have not repaired their unit and I do not think they intend to repair it. This affects me because we have some shared things like water and plumbing and with the damages to their unit it affects mine.
Do they have an obligation to the HOA to use that money to repair their unit? Do I have an recourse? As it is now, my unit will be ready in the next few weeks and their unit is an empty shell that has been demo'd only.
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