Is my HOA allowed to use HOA funds for cookouts/social events?

I'm thinking it's pretty clear that our covenants do NOT allow social expenses.

Relevant section of our covenants:

Section 2. Purposes of Assessments. The Assessments levied by the Association
shall be used exclusively to promote the health, safety and welfare of the residents of the
Property, the enforcement of these Covenants and the rules of the Association, and in particular
for the improvement, and maintenance of the Property and providing the services and facilities
devoted to this purpose and related to the use and enjoyment of the Common Area and any other
areas maintained by the Association, including but not limited to, the cost of repair, replacement
and additions thereto, the cost of labor, equipment, materials, management and supervision
thereof, the payment of taxes assessed, the procurement and maintenance of insurance in
accordance with the By-Laws, the employment of attorneys to represent the Association when
necessary, and such other needs as may arise, all such items being Common Expenses of the
Association.

Without limiting the generality of the above-described purposes, the Assessments levied
by the Association may be used for the acquisition, construction, improvement (including
landscaping and planting) and maintenance of the common facilities located or to be located in
the Common Areas, the medians within any Roads, including the lighting, landscaping and
irrigation system(s), if any, located in the Common Areas, and the maintenance of landscaping
and irrigation system(s) and the planting, maintenance and replanting of certain landscaping
improvements on portions of Lots as more particularly set forth in subparagraph (b) below, and
the payment of certain common expenses, including the following:

(a) providing grass cutting, flower beds (including replanting), fertilizing,
weed and insect treatments and maintenance of grass, trees, shrubbery and
flowers located on or within Common Areas;

(b) providing maintenance and operation of all walls, fountains, monuments,
irrigation and drainage facilities, sidewalks, paths or trails, fences,
signage, lighting or other structures and facilities located on or within
roads, median strips and any of the areas identified as Common Areas;

(c) keeping the Common Areas clean and free from debris and to maintain the
same in a clean and orderly condition;

(d) paying all ad valorem taxes levied against the Common Areas and any
other property owned by the Association;

(e) paying the premiums on all insurance carried by the Association pursuant
hereto or pursuant to the By-Laws;

(f) paying all legal, accounting and other professional fees incurred by the
Association in carrying out its duties as set forth herein or in the By-Laws,
including all costs and expenses of the Architectural Control Committee;

(g) carrying out the powers and duties of the Board, the Association, and the
Architectural Control Committee as stated in the Articles of Incorporation,
By-Laws and this Declaration;

(h) maintaining any Storm Water Management Areas located on portions of
Common Areas to the standard required by the governmental entity or
agency having jurisdiction over such areas;

(i) paying the water/sewer and utility bills and management of the master
water meter; and

(l) paying all and any other Common Expenses of the Association.

I do this too, for our meetings. But when my notice says "we are providing the food" it means we. the board, are providing the food. Not the association. The funds come from our pockets.

I think you'd have to check the bylaws for this. And also the past minutes to see if the membership had ever voted on it and approved it. If they did, it's okay.

It's a gutsy move, in my opinion, to use association money for these kinds of things. Sends a message of democratic-like government spending. I'd be asking for a decrease in dues!

Oh the Horror! You should sue! Reality is that a HOA is funded by it's members FOR it's members. Regardless if the rules state this/that, if a majority agrees it can happen.

Keep in mind I am against HOA's giving gift cards, gifts, or any little "Extras". Especially allowing people to skip paying dues in return for services. However, when it comes to having a "Pot luck" dinner with all members contributing don't see a reason the HOA can't also throw a bit of support. Which may be in the form of food, supplies, or place. Once in awhile to get the "culture" you want in a HOA you must SHARE. If anyone else agrees to the HOA not contributed, then next time cancel the whole idea.

Wow! Sounds like a fantastic neighborhood!

My only concern is they do not mention "potluck" but they mention tables for food to served from.

Bottom line, if you stand alone in your neighborhood, you'll be alone. It seems to me you are just trying to find something to complain about and to retaliate for them enforcing rules on you.

If the rest of the neighborhood, or at least a majority of them, are okay with this, you have no leg to stand on.

Go enjoy a hot dog and meet your neighbors!

In the case of the OP, I'd say section L ("any and all Common Expenses") covers it. Seems like an Association-wide event would fall under that definition. Whether money *should* be spent on it is another question (I'd be okay with it, personally), but it seems pretty clear that it *could*.

Who is being forced to pay for the event? Not seeing that? The HOA funds are for the members to use at their own discretion. The board made their decision to do a fun event to encourage a better communication and participation.

Did not see where anyone was asked to donate money and then use HOA funds. It is a choice if you want to participate to show up and join in. If you do, then you get a hot dog. If you don't someone else does. If you want to bring a food item to share, then make yourself one to bring. If not, then don't.

Don't see where anyone is "forced" to do anything they don't want to do to a community event.

Sounds like something "deeper" here than being mad about the HOA spending money on a community/HOA membership event. What did the HOA do to you? Otherwise, I don't see the reason to make this a federal case of rights violations over hot dogs....

This is one of the biggest reasons a HOA has issues trying to get qualified board members as they have to deal with negative owners.

So what I'm hearing is everyone here would be ok for their HOA using funds for things that aren't budgeted for at all, and doesn't benefit everyone?

No pool. Our only electricity is street lights. Our budget is ONLY $12,000 per year. We can't afford to have social events, let alone the many to come that he said.

A HOA is to spend as much as it collects as it spends out every year. A balancing act of sorts. Did not see where they were going to do a special assessment to raise the funds or the dues. Not sure if $50 of possible hot dog purchase could break the bank and put the HOA into debt. Plus it may be the HOA board paying out their pocket and not using HOA money. You don't even know for sure where the money is coming from.

How do you know the HOA can't afford it? Do you know the cost of buying the hot dogs are? If you know the HOA can't afford it then can assume you know the expense of the event? Your putting a lot of assumptions into this event. I only saw "Hey we having a cook-out and providing the dogs". That doesn't say to me "We going to spend all the HOA money on an event we can't afford".

How many units as in dues per year per unit?

Plain and simple. EVERYONE should be notified. 0 funds should come from the HOA budget. I would welcome such a gathering in my HOA but would not appreciate our limited funds being spent on a social event. Not everyone gets on Facebook so I think all owners should be notified.

Jeremy's CC&Rs:
"The Assessments... shall be used exclusively to promote the ... welfare of the residents...and in particular
the improvement, and maintenance of the Property and providing the services and facilities
devoted to this purpose and related to the use and enjoyment of the Common Area."

I say that this gives you no cause to sue your HOA, Jeremy, though we all know you're trying to find something. As others point out, we do not know who's paying for these hot dogs. We don't know if the board may have voted to use your contingency line item in your operating budget to spend $30 for this purpose. I think NC is a closed meeting state so there'd be no requirement to inform you.

I believe Chester's HOA comprises only a sewer system in a rural setting (vs. suburban or urban) or some such, so hers isn't typical of most HOAs that are discussed here.

If you want to know how much was spent and by whom, wait till "the bills" come in and are paid and ask--in writing-- for that month's expense statement.

I believe "welfare" and "use & enjoyment of the common areas" could cover social events paid for by dues. Every HOA around ours--about a dozen high rises has a social budget and many, including ours have a social committee. Super Bowl Sunday is a potluck event but the SC provides beverages and hot dogs. We serve two kinds: vegan & Kosher. I

Our HOA has quite a few amenities and there are very few residents who use every single one of them. We have, for instance, separate men's and women's locker rooms with two shower stalls in each, a zillion lockers, and changing area. But our swimmers towel off, put on a shirt & shoes & ride to their own condos to shower & change. Still, all Owners pay the same dues even if those showers are used by only 1% of residents (one in each is for handicapped persons).

Why is this so hard for people to understand... Our budget has $0 for social events. So them spending money on them this year is not ok. We're already over budget in other areas by a lot and dues are already on track to be raised.

Jeremy's CC&Rs:
"The Assessments... shall be used exclusively to promote the ... welfare of the residents...
and providing the services and facilities devoted to this purpose and related to the use and enjoyment of the Common Area."

I say that this gives you no cause to sue your HOA, Jeremy, though we all know you're trying to find something. As others point out, we do not know who's paying for these hot dogs. We don't know if the board may have voted to use your contingency line item in your operating budget to spend $30 for this purpose. I think NC is a closed meeting state so there'd be no requirement to inform you.

I believe Chester's HOA comprises only a sewer system in a rural setting (vs. suburban or urban) or some such, so hers isn't typical of most HOAs that are discussed here.

If you want to know how much was spent and by whom, wait till "the bills" come in and are paid and ask--in writing-- for that month's expense statement.

I believe "welfare" and "use & enjoyment of the common areas" could cover social events paid for by dues. Every HOA around ours--about a dozen high rises has a social budget and many, including ours have a social committee. Super Bowl Sunday is a potluck event but the SC provides beverages and hot dogs. We serve two kinds: vegan & Kosher. I

Our HOA has quite a few amenities and there are very few residents who use every single one of them. We have, for instance, separate men's and women's locker rooms with two shower stalls in each, a zillion lockers, and changing area. But our swimmers towel off, put on a shirt & shoes & ride to their own condos to shower & change. Still, all Owners pay the same dues even if those showers are used by only 1% of residents.

My apologies, Jeremy, for accidentally double posting. I still stick, though, with buying hot dogs being reason for a lawsuit.

Insurance

How about suing the 4 board members personally them in small claims court? I do have damages, the cost of my dues rising because of money being spent outside the budget.

Suing your Board for hotdogs? There must be something much bigger going on here. As much as I despise an HOA (Hitlers of America) there are just some things that just need to be let go. As righteous as you may be, take a step back and look at the big picture. If the majority of your neighbors are equally upset about this, then run for the Board next time and create change from within. On the surface, it sounds like you may be in the minority with the Hot Dog Debacle of 2017. My advice to you: put on your biggest smile and arrive with an appetite for questionable meat served on a bun.

Again I repeat...they said it's the "first of many" events, and we have a small budget of $12,000/year, of which $0 is budgeted for social events, and we're already over budget in a lot of categories for the year.

Well first off if the HOA was in financial trouble they would have already taken steps to raise dues or have a special assessment. They would not just announce events without having the money to pay for them. Again we still do not know where the funds are coming from or at all.

We had several "events" a year and did not cost the HOA a dime. All we did is use our clubhouse. Which was seldom used by the membership but rentable for $15 a day. A pot luck generally doesn't cost much of anything to put on as long as you have a place and people bringing the food.

I did the math. If the HOA is bringing the hot dogs to the event. The cost is about $60. That's if they are serving about 200 hot dogs... I highly doubt your HOA even gets that much attendance. Oh and by the way... handicap people eat too and participate in many things in life... Vegetarians are humans too. They just won't eat you. Do you think old folks can't chew a dog either?

You don't fully grasp a HOA budget in all it's special intricacies. Just looking at what you posted about your HOA's budget doesn't give the full picture. It's rather vague and not hardened in concrete. Looks like a budget projection than a reality. I would not make any assumptions based on those numbers alone if my HOA could or could not afford something.

Pot lucks are the worst. You end up with one pot of franks & beans and 15 trays of devilled eggs.

I know some HOAs budget for community activities while others don't, and I agree if the budget really doesn't allow it, potlucks are best.

However, you STILL haven't said whether you asked the board where the money for the hot dogs is coming from. but are making a ton of assumptions. First of all, the announcement read this is the first of what the board hopes will be many neighborhood gatherings. If lots of people show up, great and then more planning and contributions can be made to hold other events. If the event falls flat, that's the end of that - for a while, anyway.

Next, if you go to a wholesale club you can get a box of hot dogs, buns ketchup, mustard and whatever else you put on a hot dog for less than $100, so I don't see where this will break the HOA budget. Why not see how this goes first and then go from there? If you don't want to go, you don't have to.

A budget is a tool. Saying "it's not in the budget" is simply saying that it's not a line item on a piece of paper. Whether the Association can afford it or not depends on the condition of the Association's bank account.

Maybe they collected some long delinquent dues. Maybe they are underbudget in other areas. Maybe an expected increase in insurance premiums didn't happen. Maybe they found a sponsor.

Social events are an investment in homeowner engagement, just like fertilization and weed control are an investment in landscaping. I think they are a worthy community expense.

And I think if you tried to sue your Association for having a cookout, you would probably not prevail. But it's your money (on both sides of the equation).