HOA Conference Hall / Community Center

Our HOA doesn't have any amenities. 300 house community in FL. A lot of neighbors have been wanting us to build a building, a small community center of some sort on some HOA property we have. Something we can host meetings, game nights, community events. Doesn't have to be large, maybe 250 capacity or 2,000 - 4000 square feet max. Open floor plan, nothing flashy, just an accommodation. What's the most cost effective way to do this? We don't have a whole lot of extra funds to work with.

Wondering if anyone has experience doing this, and if there is any guidance to provide.

If you don't have a lot of extra money now, the only way this'll work is if you get a loan or homeowners agree to pay a special assessment. Neither option is cheap, so start with done research. You may have to see an architect about designing a building unless there are designs you can buy online.

You may need to have a general contractor look at the area to see what will be required and how much time you'll need. The building will need electricity, heating and plumbing, so you may need to put in utility lines. Then it'll need furniture, flooring, curtains or blinds for the windows. And fixtures for the toilets. Don't forget to make your restrooms handicapped accessible and a ramp for the doors.

Then after all that and building the thing, it'll have to be included as a reserve item and you'll have to save for future major replacements and repairs. Insurance will also be required.

This will be a big project if the homeowners agree to this, so get the numbers and have some special homeowners meetings to discuss it all. They may decide its easier to rent a place.

In Florida, most governing documents require a vote of the membership to add an amenity, even if it's on property that you already own. A community center is a great idea and will probably add value to the community, but as others have pointed out, it's not just the cost to build, but you must add maintenance to your budget and reserve money for long-term repairs/replacement.

Also, don't forget the cost of insurance. Insuring the building is going to be a significant cost.

Why would the CC&Rs *not* need to be amended if they did not mention amenities? Granted I'm in a different state, but all of the CC&Rs I've read have described the jointly owned property in detail. And developers disclose planned amenities, even if these things won't be built for some time.

Even if a state's HOA/COA laws are silent, I would think that real estate disclosure laws would require telling people exactly what they're buying and the condition it's in. it would be essential for condos because buyers own a fractional share of all of the common elements. There are also buyers who avoid communities with amenities because they don't want the expense or aggravation.

Lori did mention the need for an ownership vote. At the very least I'd expect the CC&Rs to address what happens if a community association adds or removes capital assets from the property.

Quite honestly, you are looking to add half or perhaps double your current HOA assessments you have now.
Adding an outbuilding right now at the low end is about $500,000.00. Do you have any parkland in your community with a playset?
Perhaps building a covered shelter for about 30-50 people with picnic tables

a lot of neighbors? ???? is exactly how many? I'm guessing 10 people, cause that's what woudl be considered a lot where I live, which is obviously not a lot.

Put it up to a memership vote. I'm guessing at least $2000x 300 homes = $600,000 would be needed.
I'm also guessing most people will not way to pay $2000 on some building they will mostlikely use 2 or less times a year.

You have to factor in the number of people whom will refuse to pay the special assessment. They are subject to being lien for not paying. Which means an additional $500 to file a lien in some states. So the paying members will have to cover the number whom don't pay till that amount is collected. It would not be unusual then for the special assessment for a facility to be a few thousand dollars from every household. Plus that isn't the end of the expenses. That is just BUILDING. There are going to taxes for the structure, insurance, maintenance, utilities, water, and possible damages. Rent amount for the clubhouse would have to cover the amount it costs for it's use during that time. We charged $50 and a $100 damage deposit. If no damages, then damage deposit returned. Plus you had to be in good standing to rent. Let's also say that $100 is most likely NOT enough to cover damages if they were to be incurred.

Let's be honest, how many people even attend the meetings? Plus there are Zoom options etc... All the years I did meetings or attended, the most we ever got was maybe 30 people. That was during elections or with stakes/axes. It's honestly not going to be worth it. I wish my neighbors would understand that too. Otherwise my house will be for sale without looking back.

$180,000 building / 300 homes isn’t a lot of money, but I think $600 + $20 additional fees for maintenance, reserve, insurance, taxes and utilites will peal off a lot of the support.

There are varied opinions here about whether a CCR amendment would be needed. I have no idea but would encourage you to run this past your association attorney for an opinion. While there may be a "lot" of owners looking for this, there are probably also a "lot" that would not want to pay for amenities that were not there in the first place and that they may feel are not needed. Proceeding could cause a messy rift in the membership, and potentially lead to a legal battle. At the very least make sure to get legal advice before proceeding on anything.

Depending on the cost, the Association may be required to have an election to add such a component since it's so expensive. And I agree with those who say to get the HOA attorney's advice.

But, again I see no reason for going to the time and expense and election to amend the CC&Rs. I checked both articles that Elle cites and see no such requirement.* Perhaps Cathy's CC&Rs and those of the developer for whom she did/does work lists every component that was there was the project was built, but I've never heard of such CC&Rs on this forum.

*One of Elle's citation is about removing (NOT adding) common areas components, and provides some statements in CC&Rs that might require an amendment, e.g., Board can't add anything that exceeds $xxxx in costs as in Dean's CC&Rs w/o own votes. And for my ca. 2000 high rise HOA, such numbers would be horribly out of date.

The only "list" of common area components is in our as in other HOAs' reserve studies.

What would the wording look like as a prospective CC&R amendment to add a clubhouse?

From one article, I only see, "Thus, if your CC&Rs prohibit dogs off leash in the common areas, the CC&Rs would need to be amended in order to permit a dog park..." But, of course, if the CC&Rs bans ANYthing, to add that thing to the HOA, the CC&Rs, re that topic, would have to be amended.

The other article is about removing common area items and doesn't assert that adding things to the common area requires a CC&R amendment.

Please help me out with anything I missed. Otherwise, I don't see how either supports your belief that the covenants would have to be amended... that a vote of the owners may not "pass legal muster." You do, Elle, toss around the phrase "tyranny of the majority" fairly often, but various HOA documents DO specify what "the majority" must be to amend them.

KerryL1, this is from the article titled "Adding Amenities" (emphasis added by me). It speaks to much more than adding dog parks. Plus you did not have the courtesy to state which article said what you quoted above.

I am afraid I find your latest post convoluted and weird (and this is so at least half the time with your posts). If someone else does not understand my position on this, I will try to respond. But given your glaring mistake right off the bat in your latest post, it's not worth my time to try to explain my position on this to you.

I think I see my mistake. I thought you, Elle, were citing these article to show the CC&Rs must be amended when HOAs add amenities (or services, I assume?) that are not somehow mentioned in the CC&Rs. But, instead, I guess the articles are to show reasons to add or remove amenities. The latter isn't part of this thread, and the former already was mentioned by several posters.

Dyno

It is quite common that owners would have to vote on a capital improvement. Check your docs.

Here's a sample of JohnC's note:

CC&R, Sect. "4.5.1 Limit on Capital Improvements. The Board shall not, without obtaining the consent of the Members as set forth above, incur aggregate expenditures for capital improvements to the Common Area or the Association Property in any fiscal year in excess of five percent (5%) of the budgeted gross expenses of the Association for that fiscal year."

And:

CC&R, Sect."4.3.7 Capital Improvements. Subject to the terms of this Declaration, the Board may, on its own motion or acting on a petition signed by two-thirds (2/3) of the Owners, approve the construction, installation or acquisition of a particular capital improvement to the Common Area and/or the Association Property...Capital Improvement may come from existing Association funds or via a Capital Improvement Assessment in accordance with Section 6.6 herein.