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Can condo association president use assessment funds without approval

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Can the condo association president use a special assessment for another purpose without any vote from the condo association owners?

Comments

We have a small association in MA and there is not a management company in place. There are two types of special assessments 1. emergency-which is necessary if there is not enough money in the operating expense account the expense. 2. planned special assessments i.e. projects not covered in the general operating expense. Planned are usually voted and priorited by the board.  
 
 
 
The board is appointed to make decisions. The primary goal of the board is to be sure that the expenses are covered and that the condominium maintains its equity. If a special assessment is necessary, there is no option and it must be paid as requested/required.
Posted @ Friday, February 05, 2010 8:01 AM by Chris
In most cases, no. It would need to be a board vote.  
 
In Michigan, there are additional assessments and special assessments. Additional assessments are ones that are for shortfalls, emergency situations or unplanned items that the association is responsible for. As long as it is something the community is responsible for, the board may pass an additional assessment. Special assessments here are for items the association does not own or aren't responsible for and require a vote of the membership. For example, if the Association wanted to build a gazebo and did not have one, that would be a special assessment. However, if the community had a gazebo and it needed repair and did not have the funds, they would additional assess for it. Typically, most of the country refers to special assessments the way we refer to additional assessments. However, it is whatever your documents state and state law provides that really outline what board may or may not do in regards to special assessments, so begin by reviewing those.
Posted @ Friday, February 05, 2010 8:31 AM by Joe Schuirmann
No, he cannot use the special assessment money other than for what was assessed, check your Association Docs and State Status
Posted @ Friday, February 05, 2010 10:17 AM by Jose E. Humaran
I'm not sure what the recourse would be for a president who used the special assessment funds for something different. It's a messed up thing to do, but I'm pretty confident that WA law doesn't provide recourse for the association. You could fire him or her, but there's not much else I can think of. 
 
If the special assessment was spent on a different item that was not a higher priority emergency, then I think it would be very very difficult to convince the community that the 2nd special assessment actually was going to go to fix the original issue. 
 
Darron 
 
HOA Receivables Management
Posted @ Friday, February 05, 2010 11:48 AM by Darron
All of the other comments are correct it is not a piggy back for the president to do. At the bare minimum the board should vote. Besides where is the treasure? The treasure must usually sign checks. It is also smart to have two officers sign checks for them to be valid the president and treasure just to prevent one person from raiding the cookie jar. 
Posted @ Saturday, February 06, 2010 2:14 PM by Barbi Rose
i'll be kicked of this board soon enough, i'm assuming cuz i just don't put up with this crap. 
 
 
 
i say "STAND TOGETHER ! UNITE WITH YOUR NEIGHBORS AND PUT A COLLECTIVE MORATORIUM ON PAYING CONDO FEES until they can produce documents (and i don't mean cooked books) proving every penny they spend. they have ten days to furnish this stuff once a year. (my condo assn. says so, anyway) and they have to alert EVERYONE by written notice 10 days before every meeting. SO many nuances they're not aware of and y'all can be... and SO little time. ::sigh:: 
 
 
 
yanno when ya got $216g a year bein' spent on weed eatin' once a week durin' tha summertime (per our budget) that the extra $214,500 is goin' SOMEwhere. 
 
 
 
i'm guessin' ole boy's smokin' crack or cookin' meth in'ah trailer park (they call'em mobile homes, but they ain't mobile, they're very still til tha twister strikes) and blarin' lynyrd skynyrd tunes with'ah muscle car up on blocks when y'all ain't lookin'. 
 
 
 
i could be wrong, but i ain't REAL far off, THAT i'll bet on. 
 
 
 
~belle
Posted @ Saturday, February 06, 2010 6:10 PM by belle
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