Powers and Duties.

Started by DanielQ • 17 replies • 1648 views

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DanielQ (South Carolina)
Posts: 5

Posted:

Does this section give a board of director the power to anything they want?
C. Powers and Duties.
Section 18. Powers. The Board of Directors shall be responsible for the affairs of the
Association and shall have all of the powers and duties necessary for the administration of the
Association's affairs and, as provided by law, may do all acts and things as are not by the
Declaration, Articles, or these By-Laws directed to be done and exercised exclusively by the Voting
Members or the membership generally.

SheliaH (Indiana)
Posts: 6,964

Posted:

They have to run the association according to the bylaws, but this part could mean if there's something the Declaration, Articles or Bylaws don't address, the Board can enact its own procedures. That doesn't necessary mean do whatever they want - for example, they can't enact rules that are contrary to local, state or federal law.

Let's start with "do anything they want" - what are you SPECIFICALLY concerned about? Did you talk to the board and ask them about the policy?

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

LarryB13 (Arizona)
Posts: 4,099

Posted:

Anything they want? Like rape cattle and rustle women? Rob banks?

Within the context of managing the affairs of the association, this passage gives the board the authority to do everything necessary except for those things that are specifically reserved for the members.

KerryL1 (California)
Posts: 14,550

Posted:

This is in your CC&Rs (covenant, declaration), right, Daniel? If so, there probably are some restrictions listed after this section. If this is from your bylaws, your CC&Rs probably spells out some restrictions

For instance, there might be one saying that most contracts may only be for one year, with exceptions listed. Or that the HOA may not hire an employee to manage the HOA; the PM must be an employee off a Mgmt. Co., etc.

But, like sheila, can you give us an example?

RichardP13 (California)
Posts: 3,868

Posted:

Daniel

What you posted is very limited. There are sections within your CCRs that specifically spell out the individual authority of the Association through its Board of Directors.

What you posted only gives the Board power authorized by the governing documents that wouldn't conflict with state or federal statues and what the members wouldn't have voting authority over. On its surface, the wording you posted doesn't give the Board power to create separate rules that CANNOT be contrary to what is authorized in your governing documents. The CCRs generally are 60 to 70 pages long or more. That is ultimately what gives the Board it power and authority.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Daniel

What you posted is fairly common language giving the BOD the ability to "run" the HOA. This does not allow them to run "free" and do as they want.

What are you having issue(s) with?

DanielQ (South Carolina)
Posts: 5

Posted:

Can they spend association fund on legal fees outside our community?
Our community is adjacent to a golf course that recently closed. They spent $5K this year for an attorney to see what the owners are going to do with the property. They budgeted $25K for next year and maybe more.

They say they're doing this to ensure the values of our homes.

DanielQ (South Carolina)
Posts: 5

Posted:

DanielQ (South Carolina)
Posts: 5

Posted:

TimB4 (Tennessee)
Posts: 21,059

Posted:

Yes, they can likely do that.

They may be trying to be proactive to keep high density homes from coming in that may affect property values.

The way to stop it would be to gather support and recall or simply not reelect those board members.

KerryL1 (California)
Posts: 14,550

Posted:

I'm not so sure they can "do that." The reason would be in your CC&Rs. Do they say that the Board tries to protect property values? (Ours do not.) Or do they say something more along the lines of: protecting and maintaining your common areas and common investments, i.e, having enough insurance, providing rash service (if that applies), etc.

Again, Daniel, I think there's more in your documents that what you quoted.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Kerry and Daniel,

What the affairs of an association are is open to debate. Most certainly, they are the day to day keeping of common areas/elements and typical business/administrative functions. However, if there is something going on that impacts the Association, or the Associations common areas, then the Board can specify, by majority vote, that this is something to be involved in.

For example, in our Association, the County widened the main road next to our development. We spent money to seek legal option on how to minimize affects that construction project had on the Association and the residents of the Association. Because the Association became involved, we were able to have a sound wall added to the project (which minimizes traffic noise) and were able to recoup damages to our common area from the actual construction.

Daniel has a golf course next to their development. Per the postings, this golf course is closed. That has an impact on the development. If that property does not continue to be maintained (not as a functioning course but water traps aerated, grass mowed, etc.) it can cause problems for the residents of the Association. Hence, at least to me, it makes sense to at least investigate what is going on with that property.

Now, is using a law firm that runs up charges of $25K a year (or more) to find out this info and, perhaps, file injunctions on the owner of the golf course money well spent? That is a good question and one that should be directed to the Board and brought up at the annual membership meeting.

GeorgeR8 (Arizona)
Posts: 182

Posted:

Mostly what everyone else said.

We had a problem with certain people. Every time they disagreed with a board decision they started telling people they should get to vote on it. We had our attorney, large firm only works for HOAs, review everything and determine what the board can do without a vote. The owners ONLY get to vote to change documents or funding ( fees, assessments, and spending over the document limit on a single project in a calendar year). Everything else is a board decision and no ownership vote.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By TimB4 on 11/17/2015 7:03 PM
Kerry and Daniel,

What the affairs of an association are is open to debate. Most certainly, they are the day to day keeping of common areas/elements and typical business/administrative functions. However, if there is something going on that impacts the Association, or the Associations common areas, then the Board can specify, by majority vote, that this is something to be involved in.

For example, in our Association, the County widened the main road next to our development. We spent money to seek legal option on how to minimize affects that construction project had on the Association and the residents of the Association. Because the Association became involved, we were able to have a sound wall added to the project (which minimizes traffic noise) and were able to recoup damages to our common area from the actual construction.

Daniel has a golf course next to their development. Per the postings, this golf course is closed. That has an impact on the development. If that property does not continue to be maintained (not as a functioning course but water traps aerated, grass mowed, etc.) it can cause problems for the residents of the Association. Hence, at least to me, it makes sense to at least investigate what is going on with that property.

Now, is using a law firm that runs up charges of $25K a year (or more) to find out this info and, perhaps, file injunctions on the owner of the golf course money well spent? That is a good question and one that should be directed to the Board and brought up at the annual membership meeting.

I agree with Tim

Were I in a situation such as Daniel's, I would be demanding the BOD take an active role as what happens could have serious consequences (good or bad) to the HOA.

GenoS (Florida)
Posts: 4,276

Posted:

Another eventuality that might befall the golf course would be its sale and subsequent development into a residential neighborhood or subdivision. I can see wanting to keep tabs on the property. 25-30 thousand to do it sounds excessive. What kind of access to the golf course owner's decision making process does $25k buy you? I'm also in agreement with other posters who say the board can do this without a membership vote in most cases.

KerryL1 (California)
Posts: 14,550

Posted:

It sounds excessive to me, too, Geno. I wonder what % of Daniel's budget it is? Can you tell us Daniel? Even with Attorney's hourly rates, it'll take a huge # of hours to reach $25,000!

I'm thinking that this a great time for the Board to appoint an ad hoc committee of interested H/Os to attend public meetings and be advocates y for your HOA. The Board could agree to reimburse members for gas, parking, etc., to keep tabs on a process that's likely to take quite some time!

DanielQ (South Carolina)
Posts: 5

Posted:

Virginia,
I understand your issues with widening the street.
You had an issue that your association could see and get something for the cost you spent.
We have no idea what to expect or what the final cost will be. Also the attorney can not change anything the golf course does.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Daniel,

My name is Tim. Virginia is the State I reside in.

When the process started, we had zero expectation of getting anything for the money we spent.
However, had we not spent the money to find things out, we definitely would have gotten nothing.

Your main recourse for your issue is to gather support and replace the current board with individuals who believe as you do, that what happens with the golf course is not the Associations business. This is done through a recall effort or simply not reelecting.

Perhaps you will be willing to step forward and serve on the Board so you can be part of the decision process on this and other Association issues.

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