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KatieL (Texas)
Posts: 21
Posted:
Our HOA is essentially broke. It has come to our attention that either the golf course OR the pool will open this summer, but not enough funds for both.

The golf course is what has been draining this community and most homeowners don't want or use the golf course anyway.

Does the board need the vote of the homeowners to shut one of the amenities down?

Thanks.
GlenL (Ohio)
Posts: 5,491
Posted:
Probably not unless there is something in your CC&R's that requires it.

Studies show that 5 out of 4 people have problems with fractions
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I would put it up for a vote or atleast have the membership discuss the issue at a meeting. It's NOT that the board might not have this power to do so BUT the fact that the board was elected to represent the owners in daily operations of the HOA. Make sure the board truly is acting on the needs or wants of the membership out of some kind of respect.

If people want both then tell them the options. It will cost a special assessment, a raise in dues, or both. A HOA is ONLY funded by it's members FOR it's members so to keep things running the money has to be raised by the members by those 2 methods. These amenities are NOT dispospal without incurring expense or damage. Pool still has to have water in it and the course still mowed...So don't just assume stopping funding is going to improve anything. It's just putting off the real problems. Apathy and not enough funds...

Former HOA President
LarryB13 (Arizona)
Posts: 4,099
Posted:
Katie:

Every time I read a post where a board member says they do not have enough money to run their association my first thought is, "I wonder if there are any adults living in that community."

Somewhere in your CC&R's there should be language that the HOA is going to operate the golf course and the swimming pool. That means that there is an obligation on the part of the HOA to operate the golf course and the swimming pool.

People who purchased homes in your HOA did so knowing that they are collectively going to have to pay for the golf course and the pool. No one, least of all the board of directors, should be surprised that they need to pay for those items. Purchasing a home within the HOA is, in part, an agreement to pay for the golf course and the swimming pool.

The reason you have no money is that you have failed to set your assessments high enough.

This is the way it is supposed to work: You figure out what it will cost to operate the HOA, including the golf course and the swimming pool plus reserves for one year. You divide that number (the expected costs) by the
the number of homes in your HOA. The result is the annual assessment that each member will have to pay.

In most associations, assessments are the sole source of income. Therefore, if the income is not sufficient to meet expenses, then assessments need to be raised. Too many boards do it backward by trying to make next year's expenses fit last year's assessments.

Now, to answer the question you asked: Does the board need the vote of the homeowners to shut one of the amenities down?

If CC&R's state that the HOA will operate the pool and golf course, then you will need to amend the CC&R's by whatever process is stated in that document.

SusanW1 (Michigan)
Posts: 5,202
Posted:
The pool is for HOA private use?

How about the course? Is it open to the public? Sounds like you need to bring in a financail manager to run the course - or sell it. It should not drag your HOA down; it should be self-sustaining.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Katie

Susan is right. There are plenty of Golf Club Management companies. I suggest that be the first place you all look before considering selling/closing it.

Hope this helps.

John
FredB4 (Ohio)
Posts: 375
Posted:
The whole community needs to be self sustaining. Your not going broke, you are paying too little in fees and have not been planning your budgets properly. You must plan for future expenses as well as current expenses.
Owners need to decide if they want a pool and golf club and if they are willing to pay the price.

JC7
Posts: 31
Posted:
Check your CC&R's and look for a provision that states the golf course should be self supporting. Meaning the HOA collects income from the golf course. If that's the case usually the board has the duty to review and if the expences are more than the income the board could make the decision to close based on the best interest of the community. On the other hand I think it best to take a vote from the homeowners before closing. Your upkeep should be covered in your budget and major repairs in your reserves. Do you have a yearly reserve study every year? You may have to increase dues. For instance if water was driving the cost up you may look into water rebates offered by your city and or county. This can be a big help in sutting water costs. Good luck
SheliaH (Indiana)
Posts: 6,964
Posted:
Quote:
Posted By MelissaP1 on 04/27/2012 6:04 PM
I would put it up for a vote or atleast have the membership discuss the issue at a meeting. It's NOT that the board might not have this power to do so BUT the fact that the board was elected to represent the owners in daily operations of the HOA. Make sure the board truly is acting on the needs or wants of the membership out of some kind of respect.

If people want both then tell them the options. It will cost a special assessment, a raise in dues, or both. A HOA is ONLY funded by it's members FOR it's members so to keep things running the money has to be raised by the members by those 2 methods. These amenities are NOT dispospal without incurring expense or damage. Pool still has to have water in it and the course still mowed...So don't just assume stopping funding is going to improve anything. It's just putting off the real problems. Apathy and not enough funds...

AMEN! This is why our BOD recommended to homeowners that we close our pool for good. We sent a letter along with an information sheet on how many people used it before we closed in three years ago (due to delinquencies and more pressing maintenance issues), how much it cost to run a full season and estimates on how much it would cost to covert the area to an outdoor entertainment area to better complement the clubhouse (a one time cost) vs. fixing everything to reopen (after 3 years and last year's blizzard, I'm sure the final tally would be considerably higher). AND we'd still have to pay the costs of running a full season every year.

We need a supermajority (75% of homeowners) to say yea or nay, but after 4 months, we've probably heard from about a third and come September, the Board has to make a decision because we start preparing the 2013 budget. It's weird how people say the Board "does whatever it wants" but when they have an opportunity to really effect change, they don't even bother to vote.....

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

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