💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

LaskaS (Texas)
Posts: 1,025
Posted:
Hello,

Here is my question. A condominium board in texas has the authority to pass a special assessment, however,

as I understand it, the vote on the special assessment must occur at a duly called meeting.

Condominiums in texas are not required to provide notice to owners of upcoming board meetings per se, However, an owner who request notification of the next meeting must be given notice.

proper notice includes date time and general items to be discussed. i.e. agenda.

I was never provided the agenda or list of topics.

point 2. When I voiced my objection for the failure to provide notice ,which would have allowed owners to appear at the meeting and voice their objections during the owners open forum. A board member announced that they would spend the money on the project $280,000. And then pass an assessment after the fact.

Is this legal?
MaxB4
Posts: 3,513
Posted:
Since Texas Condo Act is pretty much silence on the issue, it is suggested that guidance for implementation of a special assessment must come from the governing docs, more specifically the CCRs.

If you're spending $280K, where did the money come if you're approving the special assessment AFTER the fact?
LaskaS (Texas)
Posts: 1,025
Posted:
Max, we have plenty of money in the coffers..

the board for the last 3 years has spent less than half the budgeted ammount for regular maintenance and repairs.

nothing but the bare minimum is getting done.

thus owner assessments have been piling up. ..

Despite having spent only half of what was supposed to be spent on maintenance and upkeep the past two years. the board decided to raise the assessments becasue they hadn't been raised in so long.

on top of that. they are planning this special assessment.

I told them they have a right to pass a special assessment, but they can't do it retroactively.. a special assessment but have a defined purpose.

SheliaH (Indiana)
Posts: 6,964
Posted:
Raising assessments is one thing, but a special assessment is another matter. You said the board decided to increase assessment because they hadn't been raised in so long. You didn't say how long "so long" is, so it may be current costs have increased to the point an increase is warranted. These days there are issues with labor costs and supply chain - maybe that's part of the reason services have been limited. That said, the board needs to be forthcoming about how the money's being spent and why.

Mostly, y'all need a new board if they can't or refuse to answer questions about the budget. If there are other neighbors who feel as you do, you know what's next: check your documents to see what's necessary to call a special meeting and then do it. While you're at it, check what it says about special assessments, so you'll know what you're talking about when you protest the special assessment.

For this meeting, I would go ahead and give the board a chance to come clean about the budget. If they don't or you don't like what you're hearing, proceed with an election to recall them or not. Remember you'll need a group ready to step up in their place - you may need to be among that group, so understand what you may be getting yourself into.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Our BOD can raise the Annual Assessment any amount, once a year and do not need owner approval. Any Special Assessment would require 75% of all owners approving. Big difference.
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By LaskaS on 12/15/2021 9:51 PM
Condominiums in texas are not required to provide notice to owners of upcoming board meetings per se, However, an owner who request notification of the next meeting must be given notice.
TPC 82.108 applies to all condominiums (pre Jan 1, 1994 and after this date, inclusive). It says notice must be given per the Bylaws. What do your Bylaws say about notice for board meetings?

Also, do you have documentation that you requested notice?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
So why is the meeting just for people to complain and vote no? How do we know the board isn't voting because a majority of other members agreed to the increase? All the poster states is not given and opportunity to vote no. Doesn't state if opportunity is available to agree to it.

Former HOA President
LaskaS (Texas)
Posts: 1,025
Posted:
here are the facts.

The board voted to raise the monthly maintenance fees without any valid justification. If there was a need , that is one thing. But when questioned, a board members response was that the maintenance fees haven't been raised in a long time. And there are a lot of upgrades the board is considering.

I then interjected, the board has been promising and considering needed upgrades and improvements for 3 years. NOTHING HAS BEEN DONE.
Additionally, I reviewed the last 6 years financials, the association via the board is spending less on maintenance and upkeep than we were 10 years ago.
Additionally, the past two years, the board has grossly underspent the actual owner assessments on the required maintenance and repairs and upkeep.

The association accounts have swelled to over a million dollars . They had over 240,000 is excess assessments last year that were not utilized as they has been budgeted. Yet the board still voted to raise next years assessments.?? it makes no sense.

Additionally, the board is being told that all of the iron railings on the property must be replaced immediately or we may lose our insurance. (notice i said MAY)
No board member bothered to verify this information with the carrier.
I myself verified with the city that our railings are grandfathered and are not required to be replaced immediately.

It is not reasonable for any insurance company to insist that an association spend an enormous amount of money immediately . I do think they could insist the board start upgrading the railings. That makes sense. but for the board to be told and just accept without question that all the railings need to be replaced by february. it doesn't pass the smell test.

Because of the insistance of this third party that is claiming we must replace all the railings immediatly. The board agreed to go ahead and use our exisiting cash on had to pay for the railings and pass a special assessment after the railings are installed. This can not be legal..

additionally, our declaration only makes reference to "special" assessments under reconstruction and repair after an insured event where the insurance does not cover the costs to rebuild..

The following are the bylaw expert regarding assessments. This refers to the regular assessments,, i.e. dues.

bylaws... assessments.. all owners shall be obligated to pay the common monthly assessments imposed by the association to meet the common expenses. The assessments shall be determined in accordance with the categories set forth in apargraph 21 of the declaration.

The assessments made for common expenses shall be based upon the cash requirements deemed to be such aggregate sum as the Managing Agent, or if there is no Managing Agent, then the Board of Managers of the Association, determines is to be paid by all of the condominium owners, including as limited herein, the Declarant, to provide for the payment at Houston, Texas, of all estimated' expenses growing out of or connected with the maintenance, repair, operation, additions, alterations and improvements of and to the general common elements, which sum may include, but shall not be limited to expenses
of management; taxes and special assessments until separately assessed; premiums for fire insurance with extended coverage and vandalism and malicious mischief with endorsements attached issued in the amount
of the maximum replacement value of all of the condominium units (including all fixtures; interior walls and partitions; decorated and finished surfaces of perimeter walls, floors and ceilings; doors, windows and other elements or materials comprising a part of
the units); casualty and public liability and other insurance premiums; landscaping and care of grounds; comMon lighting; repairs and renova­tions; removals of pollutants and trash collections; wages; utility charges; beautification and decoration; professional including legal 7.5.71a accounting fees, management fees, expenses and liabilities
incurred by the Managing Agent or Board of Managers on behalf of the owners under or by reason of this Declaration and the By-Laws of the Association; for any deficit arising or any deficit remaining from
a previous period; the creation of a reasonable contingency fund, reserves, working capital, and sinking funds as well as other costs and expenses relating to the common elements. In the event the cash requirement for common expenses exceed the aggregate assessments made pursuant to this Pargraph 21, the Managing Agent, or if there is no Managing Agent, then the Board of Managers. for the .Association may from time to time and at any time. increase, decrease or adjust the monthly assessments set forth in this i'aragraph 21. The omission or failure of the Board of Managers to fix the assessment for any period shall not be deemed a waiver, modification or a release of the owners from their obligation to pay the same.
LaskaS (Texas)
Posts: 1,025
Posted:
Sheilia , I agree completely, I resigned from the board a year ago . The majority of the board members supported a single board member. Despite instance after instance of his misleading the board and acting outside of a single board members authority.

I didn't have enough owners willing to step up back then. I do now. The elections are in february. We are having our fist meeting next week to split of the owner list and start calling and getting proxies .
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By LaskaS on 12/16/2021 7:17 PM
here are the facts.
[snip]
The association accounts have swelled to over a million dollars . They had over 240,000 is excess assessments last year that were not utilized as they has been budgeted. Yet the board still voted to raise next years assessments.?? it makes no sense.
For you or anyone here at the forum to comment on whether this makes sense would, at a minimum, require review of a recently completed reserve study for your condominium.

Do you know what a reserve study is?

When was the most recent reserve study performed?
LaskaS (Texas)
Posts: 1,025
Posted:
yes, i do know what the reserve study is and the treasurer confirmed that we are well within the guidelines suggested by the reserve study
LaskaS (Texas)
Posts: 1,025
Posted:
Augustine. .

the issue is, the board is acting in secrecy and without transparency.

The meetings held via zoom are a convenience not a requirement. since most of the board are not resident owners. The board has all agreed to continue zoom meetings.

zoom meetings are controlled like a ghestapo. The board is using association common funds to pay a parliamentarian to be the chair of meetings. at $150 an hour.

While a parliamentarian cost "may" be something an association board could justify, it flys in the face of common sense. The parliamentarian is silencing owners and telling them they will be ejected if they interrupt.
Yet the 5 minutes owners are given to talk is like talking to a wall. questions for the board are ignored.
Owners have not been provided any information about what is going on. Minutes are published. Requests for documents are ignored.

Here's a question. can a board respond to an owner question asking why are you raising the maintenance fees when the treasurer just said the association is in excellent financial position.

Can they answer with non answers and basically say, because we wanted to?? Doesn't the board have to based their decision to raise assessments on something other their their hunch?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Let's get something straight here. Your NOT owed a reaction, a vote, or even interaction at all in a Board meeting. Matter of fact, after you speak in your 5 minute speech period it doesn't trigger a reaction or immediate vote. If that is happening it's called a "knee jerk reaction" and bad management practices. It's NOT considered "professional" behavior on the board's behalf.

An emergency on your end does not mean an emergency for everyone else. There are a set of procedures to be followed BEFORE a decision can be made. You make your point/share opinion at a meeting at the OPEN portion of the meeting. The board then takes that in and then discusses it amongst themselves to make a decision.

You are an INVITEE to a board meeting. That means even though it is considered an "Open meeting" it doesn't mean it's open for members to have an open dialog. You are invited to listen and watch what the board is doing. You may be allowed to speak openly at a designated time for a specific time period.

Board have meeting procedures like making motions, tabling a decisions, and accepting/rejecting motions. They also have the right to table a decision till they feel they have all the right information to make a decision. Which may not always be of your opinion. They have to consider the larger picture.

Sorry I've just seen way too many people who want a reaction from the board and get all upset they don't get one. A professional board doesn't knee jerk react or interact with emotional presenters. They have the responsibility to react to actual FACTS, laws, and rules of the HOA.

So far have not seen where your board is acting so atrociously in having Zoom meetings and controlling interuptions.

Former HOA President
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Let's get something straight here. Your NOT owed a reaction, a vote, or even interaction at all in a Board meeting. Matter of fact, after you speak in your 5 minute speech period it doesn't trigger a reaction or immediate vote. If that is happening it's called a "knee jerk reaction" and bad management practices. It's NOT considered "professional" behavior on the board's behalf.

An emergency on your end does not mean an emergency for everyone else. There are a set of procedures to be followed BEFORE a decision can be made. You make your point/share opinion at a meeting at the OPEN portion of the meeting. The board then takes that in and then discusses it amongst themselves to make a decision.

You are an INVITEE to a board meeting. That means even though it is considered an "Open meeting" it doesn't mean it's open for members to have an open dialog. You are invited to listen and watch what the board is doing. You may be allowed to speak openly at a designated time for a specific time period.

Board have meeting procedures like making motions, tabling a decisions, and accepting/rejecting motions. They also have the right to table a decision till they feel they have all the right information to make a decision. Which may not always be of your opinion. They have to consider the larger picture.

Sorry I've just seen way too many people who want a reaction from the board and get all upset they don't get one. A professional board doesn't knee jerk react or interact with emotional presenters. They have the responsibility to react to actual FACTS, laws, and rules of the HOA.

So far have not seen where your board is acting so atrociously in having Zoom meetings and controlling interuptions.

Former HOA President
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By LaskaS on 12/16/2021 9:58 PM
yes, i do know what the reserve study is and the treasurer confirmed that we are well within the guidelines suggested by the reserve study
I would want the hard facts.

You stated that the HOA's accounts "have swelled to over a million dollars." You simultaneously claim a special assessment or increase in assessments is not appropriate. Your use of the word swell makes me think you are reacting like many an un-informed owner: Without having an understanding of the importance of reserve funding.

You did not answer my question about what notice, if any, the Bylaws require.

I think you need to focus on four issues only:

-- Were you given proper notice? I cannot tell at this point.

-- Is this special assessment not appropriate? All I have for this is conjecture by you, along with signs you have not fully examined the financials of the association. If getting records is (still?) a problem, post back.

-- Does the board have a right to make judgment calls about the financial needs of the HOA? Within reason (the business judgment rule and similar), yes.

-- If you do not like what the board is doing, get a like-minded majority elected.
SheliaH (Indiana)
Posts: 6,964
Posted:
Reading Augustin's comment just made me think of something - aren't you the one who had post after post about how godawful the property manager was? I seem to recall at least two you had issues with and the last conversation indicated you had beef with the replacement.

If you're who I'm thinking of, it seems you're spoiling for another fight and I'm not sure the board will listen because you may still be frosty at how your tenure ended. You're right that the board should be transparent with its decisions, but could it be you're going after them simply because they made a decision you don't agree with?

Serving on any board of directors is a team sport and sometimes you don't get your way on everything. There's no guarantee you're right about everything either - the board likely has information you don't because things have than over the year since you stepped down.

I'm not saying you don't have a right to be concerned, but you would do well to take augustin's advice and do a deep dive into the numbers. You were on the board, so you should know how to do that. You might also take a look at the board meeting minutes - maybe some of your concerns were addressed. That would help when you bring up the question about the special assessment.


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Laska is always spoiling for a fight when things do not go as she would like them to go.
BillH10 (Texas)
Posts: 1,217
Posted:
Laska

In one of your posts you mentioned "Requests for documents are ignored."

As of September 1, 2021, 'that dog don't hunt' for condominium associations in Texas any longer.

If you have not already, I recommend you familiarize yourself with SB318 which passed the Legislature in May and which was signed by the Governor. SB318 modified sections of the property code which affects all Texas condominiums, regardless of which type of condominium regime they are covered by in the TPC.

Asking for documents verbally in a BoD meeting during an owner's open forum may not meet the requirements of a request to review or obtain copies of association documents.

In general terms, SB318 imposes the same document request requirements on condominium associations as have been in place for HOAs since 2011.

Your association should have developed and filed policies and processes with your County Clerk for records requests and document retention as is required by the bill. You should have received copies of both from your association. If you have not, I recommend you request copies from the property manager.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here