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LouV (Florida)
Posts: 7
Posted:
After being on a BOD (Florida) at my last community (Townhouses-HOA) for 6 years we now have moved into a single family home (HOA). I am now on the BOD's and have an issue with one of the board members in spending money allocated to this years budget. In short our 2015 budget was approved by the community, mailed out to each owner and issued again at the annual meeting in Jan. 2015. In the budget $35,000 is set aside for landscaping improvements to keep up Community Wide Standards and common area / homeowner plantings when needed. THe ACC just spent about 10K on the improvement of the complete entrance way and the board member is complaining that this was not discussed / approved at a board meeting and did not have the authority to do this without board consent. It was discussed as the head of the ACC community presented this to the board at a monthly meeting and the board stated that you have the money to do this - go ahead. My understanding is that the ACC can use up this allocated monies either throughout the year or in one shot. If they go over budget they then have to come back to the board to get approval for more money. As long as they do not spend the money foolishly then can do what is necessary to maintain the beauty of the community. Am I correct in this understanding? thank you.
KerryL1 (California)
Posts: 14,550
Posted:
Does this committee have a charter? Ours does and is delineates what the Landscape Comm. (LC) can and cannot do without board approval. It cannot, for instance, remove mature, heathy trees without board approval.
KerryL1 (California)
Posts: 14,550
Posted:
Does this committee have a charter? Ours does and is delineates what the Landscape Comm. (LC) can and cannot do without board approval. It cannot, for instance, remove mature, heathy trees without board approval.
LouV (Florida)
Posts: 7
Posted:
As far as I know there is no charter.
DouglasK1 (Florida)
Posts: 2,046
Posted:
I'm not sure if there are any hard and fast rules about how it "has" to be done, but here is how we do it in my Association.

Money is allocated in the budget for various purposes.
Items that are regular monthly or annual expenses, such as electricity, insurance, and monthly landscaping are paid by the treasurer, with no further board input past approving the budget.
Some very small budget items such as office supplies (annual budget $100) are just spent by board members, receipts submitted to treasurer, and paid.
Any other expenses are approved by the board via motion and voting. If we budget $2000 for sidewalk repair, we get quotes, they are discussed by the board, and the board votes to accept one (or not).
We don't have any committees that spend money, but I imagine the board could vote to allow the committee to spend it's budget as it sees fit, but I couldn't see the current board members doing that.

Escaped former treasurer and director of a self managed association.
LouV (Florida)
Posts: 7
Posted:
Doug we work the same way with expenses and watch the monthly bill spending very close. We have contracts with a landscaper, pool maintenance, onsite security guards, etc. Of course these expenses come out of the budgeted funds. The ACC keeps up the Community Standards set forth in our docs. We have been here 3 years and I have found out that previous boards were cheap in spending money and doing beauty modifications like plantings and replacing sod. Oh and let me mention that the previous boards never really had an ACC Committee with Landscaping. With this new board we are very pro-active in getting the look of the community, getting volunteers for committees to be active in upgrading the standards. So I feel that if $35K has been approved by the previous board and the community, that as long as they (ACC) do the work that they say they are doing and don't spend $1.00 over budget we are good. It should be pretty plan and simple.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
LouV

I say if the money has been budgeted and is spent appropriately (like budgeted for and spent on landscape improvements) then nothing additional is required.
GenoS (Florida)
Posts: 4,276
Posted:
You seem to have a single committee for both landscape and architectural control. Is that correct, and do your governing documents authorize that? The reason I ask is that Florida law has some special things to say about Architectural Control Committees that it doesn't say about landscaping. In particular, Architectural control concerns things done on individual parcels, whereas you seem to have delegated to it landscaping of your common areas.

If your documents say that's how it works in your HOA, that's fine, and the expenditure of funds as you have described seems entirely appropriate to me.
TimB4 (Tennessee)
Posts: 21,059
Posted:
lou,

Although budgeted, we don't spend without board approval.
We consider ongoing contracts (common area maintenance, utilities, insurance, snow removal) and normal administrative supplies (paper, printing, envelopes, postage) as approved. Any other contract for a budgeted item needs board approval.

You said:

Quote:
Posted By LouV on 07/15/2015 12:59 PM

THe ACC just spent about 10K . . . and the [a] board member is complaining that this was not discussed / approved . . . It was discussed as the head of the ACC community presented this to the board at a monthly meeting and the board stated that you have the money to do this - go ahead.

So show the individual the minutes of that meeting which documents that.

Side note: Our Bylaws specify that contracts are to be signed by the President. Therefore, any work being organized or supervised by others (Officer, committees) would still need the President's signature on the actual contract with the contractor. My understanding is that the President's signature requirement is fairly standard. Therefore, you may want to review your Bylaws and see if that may be the reason why this individual is complaining.

Tim
LouV (Florida)
Posts: 7
Posted:
Tim - plain and simply - She doesn't like to spend the money on anything - SHE IS CHEAP! end of story. To give you an example she was against raising the quarterly fee's by $25.00 per quarter. The community was made aware that the past 2 boards were not putting any monies into the reserves so this increase was strictly going to build the reserves. We are financially sound as a community but being 25 years old there are future projects that will need to be addressed by the long range planning committee. These projects are going to be very costly. The older residents don;t understand this.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
LouV

Them old folks understand. They just figure they will not be there then so why pay now for then.....LOL
GenoS (Florida)
Posts: 4,276
Posted:
Ain't that the truth? Every board member in every Florida association - and probably elsewhere where there are retired people - has heard that seniors are always against paying for something that won't be needed until they're already gone.

Another line of argument goes: this thing - roof, road, clubhouse - has been deteriorating every year since it was new. Consider your assessment for the reserve fund as a "pay as you go" contribution for that part that gets used up every year.

Find the reserve element that will need replacing first, figure out how much it will cost each owner if it had to be replaced tomorrow, and present to the owners that in X years we will have a special assessment for this amount UNLESS we start building up our reserves NOW.

There's also language in Florida law that says if your reserves aren't up to snuff, you have to disclose that to potential buyers and in your annual financial reports. What will lenders say if they find out about that?

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