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KathiM (Georgia)
Posts: 2
Posted:
We are in Georgia and have a HO board that spends money without getting imput from the community which pays the dues. We have an inground pool that has been leaking for sometime. The board voted to change from cholorine based pool to saltwater and in several years the saltwater cylinders are not working so they changed it back; money spent without talking with the community.

Now the pool is leaking and has been leaking for some time and they want to replace all pipes for 35-40K dollars without letting everyone know that this is going to cause their dues to be increased until they borrow from the bank, at that point they are going to visit each house (we only have 102) and let them know that the dues is going up maybe as high as 150.00 to what we already pay. To make matters worse they are not getting bids, they are allowing the company that has been taking care of the pool to do the work without asking for estimates. What are our rights as paying home owners to stop this before they go to the bank and get the money without talking to all members. I realize the board has to make decisions at times that all do not need to be consulted but when money is being spent like the changing of the water system, expensive or now borrowing money there has to be some law against this. Can you suggest anything? Thanks
JohnB26 (South Carolina)
Posts: 1,569
Posted:
? what does your contract say ?

your contract being the Covenants and Restrictions 'attached' to your deed and 'running with the land' ~ to which you agreed when you signed the deed at the 'closing'

do you not remember what was taught in grade school: do not sign anything without reading and UNDERSTANDING it

sorry for the tough love, but, you own it: you pay for it and maintain it

perhaps YOU should run for the board and or the pool committee

CAVEAT EMPTOR
TimB4 (Tennessee)
Posts: 21,061
Posted:
Quote:
Posted By KathiM on 05/06/2013 5:16 PM

I realize the board has to make decisions at times that all do not need to be consulted but when money is being spent like the changing of the water system, expensive or now borrowing money there has to be some law against this. Can you suggest anything? Thanks

Typically a Board of Directors has authority to spend funds as they see fit providing the expenditure of those funds benefit the community. Depending on your Governing Documents, large or certain expenditures may or may not require approval from the membership.

Quote:
Posted By KathiM on 05/06/2013 5:16 PM

What are our rights as paying home owners to stop this before they go to the bank and get the money without talking to all members.

I did not see anything within the Georgia Property Owners' Association Act but I may have missed it.

Typically, if you disagree with a decision by the Board you may always launch an effort to recall the Board and replace them with other volunteers who think differently than the current board.

Your Governing documents (CC&Rs, Articles of Incorporation, Bylaws) may provide other avenues, so be sure to check them.
KathiM (Georgia)
Posts: 2
Posted:
Thank you for our opinion. Yes, we did read the covenants 25 years ago, I will need to reread for confirmation. I was on the board because of issues like this, but I was voted down at every meeting for a year, half the time I was never sent the emails as to when the meetings were held because I do not go with the flow. I like thinks open, honest and clear cut for all, especially when it is our money they are spending. I have talked to some of the residents and they do not agree with this either, but no one stands up about anything which is a shame. Thanks again.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
I doubt there's a law against your HOA borrowing money, especially an unsecured loan. If the pool pipes are leaking underground, they should be repaired to restore your amenity...including obtaining multiple bids if there are enough pool companies in your area offering these construction services.

Communication sounds like an issue with the HOA board. Another issue is that you're not paying enough dues to support your community amenities and that leads to loans or assessments unless your board is wasting thousands and thousands of dollars a year, which you did not note.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
This is an EXTREMELY sore subject for me. I went through almost the exact situation. So I understand very well your frustration. A leaky pool was something I inherited my first term in. Which I was Vice-President at the time. We had to pay 2K to a company based 2 hours away to come to just DIAGNOSE the leak. They did NOT fix it. That was another 1,500 dollars to another local company. So pool repairs can indeed be thousands of dollars. IT is NOT cheap. Getting different bids is always a good idea.

Really the board here is better off doing a special assessment than a loan. However, if things are bad, then that option may not be attractive to the board to do. Easier to get a loan than trying to get the vote for a special assessment. The fact that HOA's are ONLY funded by it's members for it's members is always hard to get across.

You may want to rally for a special assessment and getting bids to present the board. That's what you can do to help get the board members to listen and maybe do the right thing.

Former HOA President

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