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Capital expenditures by condo board without association approval

  
  
  
  
  

Our condo association board has just finished renovating the bathrooms and the hallway and lobby of the clubhouse. Now work has begun on a complete overhaul of our 30 year old recreation hall. There has been no information to the community association about costs and no participation of any ad hoc committee for planning these renovations. All has been done by the 7 member condo board. No vote for condo association capital expenditures either. What can be done to stop them from making these unilateral decisions?

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Comments

I'll bet your bylaws give the board the authority. Have you read them? Your community is 30 years old? sounds like the work is needed. Why would you want to stop it? Are you trying to control the elected board?
Posted @ Tuesday, January 19, 2010 7:51 AM by Jeff Leavitt
What I hear from your question is that you feel out of the loop and don't have enough information to understand what is happening. How might you get this information? Here are some of my ideas - go to the Board Meetings and ask questions. Ask other homeowners what they know. Read any letters or communications such as newsletters that have been distributed. Read the minutes of the association - lots of information there. Hope this coaching helps.
Posted @ Tuesday, January 19, 2010 8:46 AM by Sherry Valentine
You should check local laws and your condominium documents to see if these are Board member responsibilities and to see what, if any, members' roles are. In general, the Board has the fiduciary responsibility to maintain the property. Usually such responsibilities are spelled out in the condominium documents where owners's rights and responsibilities are spelled out as well. 
 
If membership vote is needed, it should be spelled out. 
Posted @ Tuesday, January 19, 2010 12:49 PM by Joyce Nord
Sounds like there is some confusion between repairs and replacement versus capital improvements. It sounds like repairs are taking place because the board is fixing old runned down buildings, etc. The board generally doesn't need community approval for such repair or replacement. 
 
A capital improvement is adding something to the community that wasn't previously there. 
 
In my community there was a huge uproar over the playground being replaced. The owners were PO'ed because the board didn't get their 67% approval. The board didn't need it since it was simply replacing an existing structure with one that was more sound. 
 
Darron 
 
HOA Receivables Management
Posted @ Monday, February 08, 2010 12:55 PM by Darron
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