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JosephW (Michigan)
Posts: 882
Posted:
A New Jersey Appellate Court just reinforced the responsibility of the board to make sure the assessments are adequate to maintain the property AND fund the reserves.

Print this link off if you have board members who aren't taking their duties seriously.

http://www.njlawblog.com/community-associations-condominium-maintenance-fees-must-be-sufficient-to-maintain-common-areas.html

Joe

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SidneyP (Florida)
Posts: 302
Posted:
I live in Flordia so your new rule won't help me but I do need some good advice. When I purchased my TH, the community was small(77 units) and not elaborate but still very eye appealing. There was a beautiful small lake w/pier, 2 fountains and a nice barked path leading to the pier, a small park w/gazabo, three(3) large landscaped areas w/evergreen shrubs and crape myrtles, the park was also outlined w/evergreens(30+), the entrance has a white board fence and stone wall on each side, this also had shrubs(20+) and a property line of magnolias. At least 30 of these are dead and have been so since we took over last Jan. Our landscaper has never done anything except cut the grass, nothing else pertaining to landscaping has ever been done, except by my husband and myself who have weeded and pruned the crapes 3 times. No weeding, no fertilizing, winterizing, replacement, nothing by the HOA. At the Budget review meeting the other night, I brought up that I didn't see anything in the landscaping budget for replacing all the shrubs and general cleanup. The Vice President spoke up and say we're going to just pull them up(he wasn't kidding). No one said anything but me,(only 4 HO's there, Board and PM), "I said pretty soon we'll have nothing." Someone has already taken up all the boarders along the path and the plant beds(heard it was the VP, his wife wants to remove the path and replace it w/just sow). I on the other hand love the path, it is what invites you to come take a look at what is beyond. What I'd like to know is can two Board members take away everything I purchased w/my property? Is this what the CC&R's give the Board the authority to do. As most association's, HO's just don't show any interest in coming to meeting and since the Board has NEVER sent a newsletter or informed the HO's by any means about anything, they (HO's) don't know what they are doing or want to do. It just does not seem fair that the Board can take away everything that attracted the HO's to this community.
GloriaM (North Carolina)
Posts: 829
Posted:
Sidney:

First I want to ask, how many board members do you have? You stated only 2 are making decisions? Second, I would say they should replace what was there and work a tree & shrub maintenance line item into the budget to care for them. I know there are many types of trees that are hardy, and some like Leland Cypress that are prone to bagworms and need to be sprayed. Sounds like it may be time to get rid of the landscaper or at least have a talk with him to begin providing better services.
hoatalk (California)
Posts: 603
Posted:
Posted By SidneyP on 02/08/2007 4:59 PM

I live in Flordia so your new rule won't help me...


Sidney, The NJ court decision may help you because courts tend to follow each other across states in some cases. I'm no attorney, but this case seems like one of those basic law cases that may end up applying in multiple states.

It says, ["the Association must "prepare and adopt an operating budget which shall provide for .... adequate reserves for repair and replacement of the common elements and facilities". A condominium board that fails to raise its maintenance fees to levels sufficient to maintain the property and set aside adequate reserves could very well be found to have breached its fiduciary duty."]

It sounds like your Board is doing what the NJ board did on a smaller scale; e.g. not maintaining the common elements. They are removing them so as not to have to maintain them. Maybe you could:
(1) Get photos of the property as it exists now so you have proof of current condition and layout.
(2) Give your board the article posted above and explain that the association must 'maintain' the common elements, not destroy them. If the board continues on this path, they may be in breach of their fiduciary duty and could end up personally liable for damages to owner's property value, since their D&O insurance may not cover them for this type of willingful breach.
(3) Volunteer to head the landscape committee to develop a good plan, get bids and make it happen. Make it easy for your board to comply and improve the community.

Again, this is not legal advice, just one opinion.


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JM2 (Oregon)
Posts: 439
Posted:
Sydney:

I would suggest that you check to see what your landscape contract calls for; that is, are they doing all that they are contracted to do, or just skating by doing the mowing and that's it?

Preservation of the common elements/areas is important to maintain the value of the homes. I would talk to other residents and if they are concerned, either get them to go to the board meeting and let the board know of their concern, or write a letter (either separately or a whole bunch of people sign one letter) to let the board know what they want.

Also, check your documents regarding the Board's ability to raise the assessments. It may be that they are operating under a constraint in raising assessments and are choosing to cut back on landscaping rather than some other area (I managed one TH community where the Board could not raise the assessment more than 10% per year without a vote of the owners). If there is a limitation, the Board may want to put things to a vote of the community (getting a straw vote ahead of time might be good to let them know if it's worth pursuing).

Landscape is often the cheapest way to increase the value of the property; it raises the "curb appeal" very quickly - or could lower it if it's neglected.

Good luck!

J. Patrick Moore, CMCA
Compliance Coordinator
Forest Heights Homeowners Association
Portland, Oregon
BobA (California)
Posts: 23
Posted:
If your Board in there monthly newsletter states they are raising the monthly assesmnents two dollars because they state in 7 to 10 years they will not have enough money to resurface the roads if they last that long, But in the proposed budget for this next year the Street Reserve was not increased one penny only every other assesment such as trash collection, maintaing waterways and insurance show an increase from last years Budget, Is that a proper way for a Board to do this?
In our BY-Laws it states the Board can increase the annual assesments up to 10 percent without a vote. If this is the case then it seems they will increase the assements every year and stay under the 10 percent so they do not have to have a vote taken. That would not be a problem but when they are telling the homeowners the increase is for one purpose but the Budget shows no increase for the Streets, what would be the best action to get this matter resolved.
RogerB (Colorado)
Posts: 5,067
Posted:
Posted By BobA on 02/13/2007 7:02 PM
If your Board in there monthly newsletter states they are raising the monthly assesmnents two dollars because they state in 7 to 10 years they will not have enough money to resurface the roads if they last that long, But in the proposed budget for this next year the Street Reserve was not increased one penny only every other assesment such as trash collection, maintaing waterways and insurance show an increase from last years Budget, Is that a proper way for a Board to do this?

It could be the proper way to present the budget if you are looking only at the operating budget increases and the road resurfacing is listed as a reserve budget item.

BobA (California)
Posts: 23
Posted:
Every year the budget shows 7200 dollars is put aside for Street reserve. The Boards states they need to increase the assesments by 2 dollars a month so that in 7-10 years they will have enough money for the roads with out having to do a special assesment. The proposed budget for this coming year still shows only 7200 dollars put aside and all the rest of the expenditures increasing. How is that proper.
RogerB (Colorado)
Posts: 5,067
Posted:
Posted By BobA on 02/13/2007 8:29 PM
How is that proper.

Don't know. Has any member asked the Board for an explanation?

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