Subscribe to Blog

Your email:

Follow Us

Looking for answers?

condo association blogCan't find the answer you're looking for?  Ask your question here and we'll post it in our blog.

Browse by Topic

Condo Association Management Blog

Current Articles | RSS Feed RSS Feed

How to stop needless HOA spending on projects?

  
  
  
  
  
  
hoa projectsOur HOA Board wants to build a new building attached to our open area cabana. The capital cost will be around $150K. This is new construction. Many in the HOA community are against it in the poor economic environment because it will require an assessment to build this. The HOA board (3 persons) are stating that they do not need member approval to do this. The room will be 30' x 24' which seems small to me for a community of 160 homes. They claim maximum occupancy is 70 persons which seems high. They want to install a kitchenette and a granite bar area which will use up some of the room. Can we stop this needless spending when more than 50% of the condo community do not want this area. Many are seasonal people and would not use it.
Tags: 

Comments

Check your association docs to seek what it says about the common elements and what can be done without owner's approval, this is an alteration of the common elements and should be approved by the majority of the owners, in addition check your state status and ultimately seek legal opinion.
Posted @ Thursday, February 25, 2010 10:43 AM by Jose E. Humaran
Hi - that's outrageous. There must be something in your by-laws about spending limits/capital expenditures versus other expenditures. If not, can you call a special meeting and pass an amendment immediately to cover this issue. We have massive leaks and black stachy mold in our lockers and the Board has called a special meeting to vote on whether we "should" fix this issue. We are prepared to file a lawsuit against them personally if this doesn't pass. It's another outrageous act of our self serving board - one of whom owed thousands of dollars in past due monthly and special assessments. Breach of Fiduciary Duty and Negligence may not be covered by their D & O. And - our insurance is already being questioned as to it's validity - the insurance company opened it's own claim file. Take a stand if your majority don't want this! Some of these Condo Boards are totally out of control and we need better laws governing this type of issue.
Posted @ Thursday, February 25, 2010 10:46 AM by Maryann Manion
Most documents contain provisions that prevent additions without a co-owner votes. Most documents state that the board must set a budget, establish reserves and set the assessments. Many state that the board can additionally assess for shortfalls, but in some that would still require a vote of the membership. Check your documents under assessments and consult a real estate attorney.
Posted @ Thursday, February 25, 2010 11:09 AM by Joe Schuirmann
Typcally, the answer will be in your Condo Documents.What the documents about changes common property is what goes. 
 
In Florida, you would expect the documents to say no improvements or addition can be made to the commom Property at a cost in excess of $10,000, are allowed without a formal ballot ( a show of hands vote by people present in a meeting is not accepted, the ballot has to be noticed )of all the voting rights. i.e. all the owners. 
 
At least 50% plus one have to vote and the majority of Yes / No votes counted is the winner.  
 
If the documents call for this ballot before going ahead in your circumstances, and the Board spends the money without going through the procedure laid down in the documents, the Directors will be personally liable and their insurance will not cover them, indemnity because they have acted in breach of their Association Documents.  
 
So they had better be certain of what the documents say, too.
Posted @ Thursday, February 25, 2010 1:02 PM by John C.
Post Comment
Name
 *
Email
 *
Website (optional)
Comment
 *

Allowed tags: <a> link, <b> bold, <i> italics