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| IHG Insurance (National Insurance Provider) |
| Providing Community Association Insurance for over 25 years: D&O Liability, Crime Products, Umbrella Coverage and Property Manager's Errors & Omissions Liability. |
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RichardP13
Posts:490
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| 03/18/2010 4:04 PM |
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| Can someone tell me where the funds should come from in building a new security shack and entrance to 3 adjoining HOA's that are connected by a private street. Currently, there is nothing in reserves for this project. Would it come from a special assessment and would the assessment be from all 3 HOA's that benefit? |
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GlenL
(Ohio)
Posts:2944
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| 03/18/2010 6:43 PM |
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| Richard the money would come from a SA which in CA is limited to 5% of the budget without homeowner approval. It would then be added to the reserve study to fund its repair or replacement. As to your second question to paraphrase Michele: it depends on what the documents call for or what can be negotiated that doesn’t violate the CC&R’s. In our case there would be two things that come into play; first the covenant that limits the amount the BOD can spend on a capital improvement ($2,000) without approval of the homeowners. Second is the easement on our road which we share with another development, which states that the cost would be proportional to the number of units in each development. |
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Associations are full of willing homeowners, some willing to volunteer and the rest willing to criticize. Author unknown but very perceptive. |
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ChrisP5
(Missouri)
Posts:61
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| 03/18/2010 6:56 PM |
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| Richard, do you have existing security staff or will you also need to also fund 24x7 staffing as well? The cost of the small building may be the least of these HOAs financial concerns if there will be additional staffing costs. |
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RichardP13
Posts:490
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| 03/18/2010 11:36 PM |
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Posted By ChrisP5 on 03/18/2010 6:56 PM
Richard, do you have existing security staff or will you also need to also fund 24x7 staffing as well? The cost of the small building may be the least of these HOAs financial concerns if there will be additional staffing costs.
We would have to hire security on a 24/7 basis at about $100K a year, plus the building is going to cost $130K. They are going to try and do this without homeowner approval. |
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RichardP13
Posts:490
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| 03/18/2010 11:40 PM |
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Posted By GlenL on 03/18/2010 6:43 PM
Richard the money would come from a SA which in CA is limited to 5% of the budget without homeowner approval. It would then be added to the reserve study to fund its repair or replacement. As to your second question to paraphrase Michele: it depends on what the documents call for or what can be negotiated that doesn’t violate the CC&R’s. In our case there would be two things that come into play; first the covenant that limits the amount the BOD can spend on a capital improvement ($2,000) without approval of the homeowners. Second is the easement on our road which we share with another development, which states that the cost would be proportional to the number of units in each development.
We have monthly income of $44K and yearly at $532K. They are in the process of approving of putting cameras at the gates at cost of $30K, again without homeowner approval and it's above the 5% cap. |
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GlenL
(Ohio)
Posts:2944
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| 03/19/2010 8:06 AM |
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Richard, davis-stirling.com states that: Discretionary Additions. The discretionary addition of new facilities which were not previously part of the development's original construction, which exceeds 5% of the budget, requires membership approval. Examples include the construction of a clubhouse, tennis court, swimming pool, or gym. Capital improvements that do not require membership approval are (i) those required for safety purposes, and (ii) government mandated improvements. The voluntary addition of a retaining wall to stabilize a slope for safety purposes should not require membership approval. The installation of a fire control system ordered by local fire authorities does not require membership approval.
Now the argument could be made that this is a safety issue and thus not subject to the 5% cap however I believe that the project may violate your CC&R’s. That’s right Richard I’m saying that the Board may be acting improperly. Section 25.1 of the Declarations says: (bold by me)
Section 25.1 Entry Gates. Vehicular and pedestrian access into the Property may be
controlled by electronically operated entry gates located at the entrance to various streets within the Property. Entry gates will not be staffed, except that interim staffing may be provided by Declarant and/or the Merchant Builders at their sole cost and discretion as a part of development and marketing operations at the Property. Interim gate staffing may be modified or eliminated at any time without notice.
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Associations are full of willing homeowners, some willing to volunteer and the rest willing to criticize. Author unknown but very perceptive. |
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RichardP13
Posts:490
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| 03/19/2010 1:07 PM |
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Glen
Being that we are a gated community, apparently we have issues with security, although not many people see it that way. Most of our issues are within the gates itself, speeding or running stop signs, which no one wants to address.
The cameras are supposed to be the first step, because they say that the guad shack project would take 2-3 years to complete. The cameras are supposed to cost over $30K, again over the 5% while the cost of the shack and personnel if split between the three community at a 40/30/30 ratio will cost us $52K and $39K respectfully if the numbers given are correct.
I guess the problem I see is that the management company is allowing or advising them to handle all business as "action without meeting" and the action is never referenced in the minutes and there apparently is no paper trail. |
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