BOARD SPENDING LIMIT II

Thanks for your responses. I should have been more specific about what I'm trying to accomplish.

I am a member of the Board of five directors; 500 member homes.
There was a proposal to authorize an expenditure estimated in excess of $50 thousand dollars for an expansion of our recreation facility. The expansion is not part of the reserve fund (which is designed by a professional RDA company). The project is a luxury, but is favored by some.

Many members expressed their distress over the possibility that this large amount could be approved by three directors. Our corporate attorney advised that there is no requirement for approval beyond the Board. But he did recommend a referendum for this amount of expenditure.

I, and others, want to make a referendum procedure binding by an amendment to the bylaws. Our first draft is:
Applies to any unplanned amount over $20K which includes ancillary costs such as reserve funding, insurance, maintenance, etc.
Approval is attained by a majority of voters, with a minimum of 250 votes (1/2 the membership) received within 30 days.

Does any HOA have a similar provision? Do these parameters seem reasonable?

TO JOEW1:

Thanks for your response. Our reserve fund is always maintained at 100% of the amount designed by a professional RDA (Reserve Data Analysis) company. It is reviewed and updated every three years.