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JanineR (Tennessee)
Posts: 259
Posted:
Generally, where is the line drawn between
* alterations and improvements, and
* maintenance, repair and replacement?

TN condos/145 units

-------------------------
Master Deed below:
-------------------------
"Except as reserved herein by Developer, there shall be no alteration or further improvement of the Common Elements without prior approval in writing by the owners of not less than sixty-seven percent (67%) of the total allocated vote of the Association, except as provided by the Bylaws,

-------------------------
Bylaws below:
-------------------------
"The Board of Directors is specifically charged with the responsibility of providing for the care and upkeep of all Common Elements and Limited Common Elements of the Condominium pursuant to the provisions of the Master Deed. Specifically
...
6) To provide for the maintenance, repair and replacement of the Common Elements and Limited Common Elements as required by the Master Deed
...
b) Specifically, whenever in these Bylaws or in the Master Deed the Association is given the power to take any action, it is the intention of such instruments that the Board of Directors shall act for the Association in all cases, except to the extent that is is expressly provided that action may be taken upon vote of the Unit Owners.
c) Nothing in these bylaws shall be considered to grant to the Board of Directors, the Association, or to the officers of the Association any powers or duties which, by law, have delegated to the Unit Owners
AugustinD
Posts: 3,698
Posted:
This topic comes up fairly often here. As the cliché goes, the line between {alterations or improvements} and {maintenance, repair and replacement} is sometimes not bright. On the subject of when a 'change' to a reserve component/infrastructure goes beyond {maintenance, repair and replacement} and will require a membership vote, I think the following site provides a good deal of guidance for any HOA/COA nationwide:

https://www.davis-stirling.com/HOME/C/HOA-Capital-Improvements
CathyA3 (Ohio)
Posts: 6,299
Posted:
It's not always black and white.

Usually, though, maintenance involves the regular repair or replacement of current assets. Capital improvements generally increase the value of physical assets - this can mean adding new components or improving an existing component beyond its original state. These improvements can be added functionality or something that extends the useful life of a component.

So, you wouldn't need homeowner approval to replace roofs when they're at the end of their useful life. You may need approval if you wanted to do something beyond that - for example, replacing the roofs with a different material.

In other words, maintenance means maintaining the status quo, while capital improvements involve changing the status quo.
ND (PA)
Posts: 792
Posted:
You can google legal definitions of these terms and see that there is a pretty clear distinction between "Maintenance, Repair & Replacement" and "Alterations and Improvements".

Generally though I'd say that . . .

"Maintenance, Repair & Replacement" - Defines activities to existing elements to keep them in proper condition or eventually replace them with new elements that are identical to what existed previously. (e.g., maintaining white trim by repainting the trim with the same color white paint; repairing the gazebo roof that had blown off during a wind storm; replacing a mailbox that had been vandalized by a baseball bat.)

"Alterations and Improvements" - Defines any changes to existing elements. (e.g., construction of a gazebo where one didn't exit before; changing the siding material from wood to vinyl.)
JanineR (Tennessee)
Posts: 259
Posted:
Thank you for the replies.

Here are some real examples:

a• Upgrading the existing sitting area that has worn out furniture with new furniture, but with a modern style
b• Replacing the seats at the picnic area with seats and a table
c• Adding exterior string lighting to the picnic area, where none existed before
d• Adding trash cans and benches to the bottom of exterior stairwells where none existed before
e• Adding signage, where non existed before
f• Adding trees, planters, plants, irrigation 25% would be to repair the existing, then 75% would be new
g• Creating an aesthetic and lockable enclosure for the dumpsters to conceal them and adding landscaping (expensive)
h• Cleaning up existing landscaping that affects our view

Which of the above would require membership approval?

-------------------------
Master Deed below:
-------------------------
"Except as reserved herein by Developer, there shall be no alteration or further improvement of the Common Elements without prior approval in writing by the owners of not less than sixty-seven percent (67%) of the total allocated vote of the Association, except as provided by the Bylaws,

-------------------------
Bylaws below:
-------------------------
"The Board of Directors is specifically charged with the responsibility of providing for the care and upkeep of all Common Elements and Limited Common Elements of the Condominium pursuant to the provisions of the Master Deed. Specifically
...
6) To provide for the maintenance, repair and replacement of the Common Elements and Limited Common Elements as required by the Master Deed
...
b) Specifically, whenever in these Bylaws or in the Master Deed the Association is given the power to take any action, it is the intention of such instruments that the Board of Directors shall act for the Association in all cases, except to the extent that is is expressly provided that action may be taken upon vote of the Unit Owners.
c) Nothing in these bylaws shall be considered to grant to the Board of Directors, the Association, or to the officers of the Association any powers or duties which, by law, have delegated to the Unit Owners
AugustinD
Posts: 3,698
Posted:
I can see how frustrating this could be for your Board. Everything you listed seems reasonable, yet it costs the owners money, so for most of them, I think approval is required.

I think I would recommend that the Board ask the HOA attorney to rule on each item below. My own view:

a• Upgrading the existing sitting area that has worn out furniture with new furniture, but with a modern style

IMO, no approval required.

b• Replacing the seats at the picnic area with seats and a table

IMO, approval required.

c• Adding exterior string lighting to the picnic area, where none existed before

IMO, approval required.

d• Adding trash cans and benches to the bottom of exterior stairwells where none existed before

IMO, approval required.

e• Adding signage, where non existed before

IMO, approval required, unless the proposed signage is for safety reasons.

f• Adding trees, planters, plants, irrigation 25% would be to repair the existing, then 75% would be new

IMO, approval required.

g• Creating an aesthetic and lockable enclosure for the dumpsters to conceal them and adding landscaping (expensive)

IMO, approval required.

h• Cleaning up existing landscaping that affects our view

IMO, no approval required.

KerryL1 (California)
Posts: 14,550
Posted:
Are you sure, Janine, there is nothing else in your Master Deed about this topic? Isn't there a section, for instance, that states what items the HOA is responsible for and what items Owners are responsible for? And within that, or elsewhere?

It just seems plain silly that owners would have to approve a string of lights. With Augustin, I really think you need your attorney's interpretations.

Is there no definition of "improvements" or "capital improvements" in the glossary to your M. Deed? I'm also wondering if there might be a contradiction between the Deed and your Bylaws, which state: "The Board of Directors is specifically charged with the responsibility of providing for the care and upkeep of all Common Elements and Limited Common Elements..." "Upkeep" of common elements might include adding more trash containers.

JanineR (Tennessee)
Posts: 259
Posted:
There are boundary sections in our governing documents that say where unit responsibility stops and limited and common areas start, but all the examples given are exterior and are common areas.

There is a section that calls out the original improvements in the development stage in the master deed:
"(d) The land, which is hereby submitted to the condominium form of ownership,
is fully described in Exhibit "A" hereto, which, by reference, is made a part
hereof as fully as if copied herein. The improvements to be located on such land
shall include, but are not limited to, six buildings containing up to 145 residential
condominium units, sidewalks, paved parking areas and landscaping improvements."

The board made a huge wish list of things to improve.
In an ideal world, I would love to see them all, but we don't have unlimited funds, it is not the board's money.
In some cases we may not the authority and in other areas we have the responsibility.

I had my own answers which are close to others that have replied

* Augustine's answer about safety signage gave me extra thought
* Kerry your answer about "upkeep" and trash cans also gave me extra thought.

I did put this out there to the associations attorney, but it seemed to have got buried in a whole huge list to the attorney.

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