Capital Improvement for Security Building

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 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.

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.