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MaureenM5 (Washington)
Posts: 9
Posted:
Hello All,

What is an homeowners recourse if the board takes action without a meeting to spend 25k on a cabana remodel or some other non- essential "fun project"?

This is from the previous Board Meeting Minutes:

" The board also agreed that we would call a special meeting to vote on the remodeling once XXXXX board member obtained the necessary information."

Thanks,
M
DanielH1 (California)
Posts: 482
Posted:
This may be a violation of your Bylaws. The Board may not have the authority to spend more than a certain amount without a vote by the rest of the membership.

However, if they ignore this and proceed ahead, your only recourse might be to sue.

The Board can convene special meetings so there is nothing improper here, assuming that they met all the requirements for a special meeting.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Maureen,

Unless your governing documents (Articles of Incorporation, CC&Rs, Bylaws) require membership approval before spending any such amount, the Board would have sole discretion on how to spend the money.

The section you posted doesn't clarify if the special meeting was for the membership or the Board, as there can be special meetings of the Board as well as the membership. Additionally, each Board meeting may revisit a previous board meeting decisions and change it.

I would suggest that you contact your Board and ask when the special meeting of the membership will be called to discuss the cabana as outlined in the minutes of mm/dd/yyyy and see how they respond.

Tim
MelissaP1 (Alabama)
Posts: 13,836
Posted:
It sounds like the board did have a meeting amongst themselves after they got the bids in for the project. I don't think they needed a special meeting of the general membership to make this decision. NOt knowing all the details, it doesn't sound like the remodel idea was a secret. It's probably been a project of interest discussed over time.

We spent over $8K for our pool area. Does this sound like a "fun project"? Would the fact that it had a 20 year old termite infested railroad tie retaining wall that was collapsing and a danger to kids make it any less fun? A remodel doesn't necessarily mean frivolous or unnecessary. It could mean safety improvements and making it up to new standards.

Every place needs an upgrade over time. It's got to be done sooner or later. Maybe there were other things that could use improvement or attention. However, it sounds like this project was the one that got it's due.

Former HOA President
CarolR11 (Colorado)
Posts: 2,563
Posted:
Hello All,

What is an homeowners recourse if the board takes action without a meeting to spend 25k on a cabana remodel or some other non- essential "fun project"?

This is from the previous Board Meeting Minutes:

" The board also agreed that we would call a special meeting to vote on the remodeling once XXXXX board member obtained the necessary information."
-------------
Maureen, It doesn't look like they are taking action without a meeting, which would require unanimous written consent from all directors. That consent would appear in minutes at the next regularly scheduled meeting of the board.

Instead it appears that they did or will call a special meeting of the board (but of maybe members?)

In Calif., 4 days' posted noticed is required so that owners can attend and comment/ask questions about the project during open forum or even during the meeting itself if the board permits. Special meetings of the board usually are just about one topic.

I see no reason for the board to take this kind of action rapidly and behind owners' backs unless there is emergency work needed on the cabana.

SusanW1 (Michigan)
Posts: 5,202
Posted:
Special Meeting of the HOA Members to get approval

or

special board meeting??

The minutes should have been more clear.

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