Spending Association's money

Started by LouiseH1 • 6 replies • 1193 views

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LouiseH1 (South Carolina)
Posts: 13

Posted:

When a Covenant is orginially written, it is written to protect the declarant/developers' interest. This is then passed on to 3 to 5 homeowners who serve on the Board. These individuals have no more or less experience than any other homeowner. Many times these individuals becomes overzealous in their pursuit of what they want or what they deem as important.

Question: How does the Association curb spending? Is there a way for the general membership to put a cap on the amount a Board can spend? If a project goes over this cap, it must come to a vote to attempt to avoid personal agendas.

It appears that our HOA President has ruled over the other Board members. We have put money into one Common Area which has been his pet project. We have spent a few thousand dollars on remodeling the pool house, commercial type benches, cable for a 60 inch screen TV and now paying a monthly cable bill, he wants a sound system and tile the floor. This is only a small building. This TV will sit and not be in use 90 percent of the time. Since the remodeling of the pool house, he and his wife have decided that they don't want it "messed up" and have now locked the facility. People who use to be able to sit in the pool house for lunch and cool off no longer have that luxury. We now have to ask permission to use it.

I am now on a committee for concerned residents regarding this situation plus many other problems. We are now attemtping to address to Board regarding this situation.

Has any other Association had this problem?

Louise

Jadedone4 (Virginia)
Posts: 495

Posted:

LouiseH,

The President is only allowed to do what the other board members allow him/her to do - if the actions were improper; well there were "X" number of board-members who didn't stand up.

On the issue of the clubhouse, I would think that the community would require access to any common element, that HOA dues/assessments fund. Again, the President can only do what the board-members or community allow him/her to do. How is the building secured; keyed, electronic access, etc...? Another "assumption" on my part is if the HOA (President) spent funds on the "60inch TV) then I would hope that the building had security, or some other means to prevent that TV from sprouting "legs" and walking away. Improvement projects such as those that you mentioned, should have been voted on in a meeting, and there should be a paper trail (bids/RFP's, plans/drawings, votes in/out for measure, contracts with vendors, etc).

On your last question regarding "if this has occured in other HOA's..." I am sure that it has with another set of circumstances (may have been pool furniture, flowers, a treadmill, tot lot, etc), that mirror your post. As far as addressing the "rogue board" do a quick search here (rogue board, permission, voting, etc) with capture words and you will find multiple posts with situation and resulting suggestions to the poster from folks here. You voted the board in, and you can vote em out if need be.... just be prepared to have replacements willing to put the work in - not just butts in chairs.

NancyD1 (Florida)
Posts: 447

Posted:

If the pool house is a common element. Everyone who pays HOA fees/dues has a right to use it. If there is a lock, which I would not object to given the items in there, everyone should have a key. If you do not have coded key access, the keys that are handed out to the owners can be recorded against their lot. This will not stop a problem but it does promote more security than no lock.

A monitor/camera in the pool house may also stop anyone who is going to walk off with something. A sophisticated system can run thousands of dollars but a camera with tape may only run a few hundred.

LouiseH1 (South Carolina)
Posts: 13

Posted:

Thank you for your response! I will clarify some of my statements.
The pool house has been locked and homeowners will not have keys and there is not a keyless entry. Our commmittee has proposed that homeowners have a key or the other option would be a keyless entry.

Our problem...this Board is in because of lack of quorum. Out PM said "Oh well, this happens all the time." "We will leave it as it is." He made the comment at a meeting that is how you stay in office...don't get a quorum.
The committee is also working on a new election and will be informing door to door the importance of voting.

LouiseH1 (South Carolina)
Posts: 13

Posted:

Thank you for your response. I am new to this web site. It has wealth of information.

NancyD1 (Florida)
Posts: 447

Posted:

No matter that this BOD is "in" because there were not enough homeowners running or not, they do have a right to lock up a common element and keep the owners out. The key less entry may be better. It can be charted with numbers on the entry card to see who goes in or out. This is in case there is a problem.

It is also a wise decision that you are going door to door for the election. If you want change this is how it is done>

LouiseH1 (South Carolina)
Posts: 13

Posted:

Nancy,

Thanks for both your responses. We had willing people to run for the election, but we did not meet the quorum. Homeowners did not send in their proxies.

Most of the HO never lived in an HOA community so I don't think they know the importance of voting.

Thanks again

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