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

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

SusanO3 (California)
Posts: 163
Posted:
I have read our CCRs and Bye-Laws to see if they offer advice on ad hoc spending levels that require a Board vote. No help. We have an invoice to repair our backflow for $3,195. Would this require a formal vote on your Board? If so, could it be an emergency email vote, or would it need to wait for the next Board meeting, we have ours every two months. TIA Sue
KerryL1 (California)
Posts: 14,550
Posted:
Is it an "invoice," or a proposal? If it needs "approval" in order for the work to proceed, then yes, the Board must vote to approve it.

If damage to your common areas or homes would occur if it is not repaired right away, then, in CA, you can/should call an emergency meeting online to get board approval.

See the Davis-stirling.com Index. on Emergency Meetings of the board.
TimB4 (Tennessee)
Posts: 21,061
Posted:
We require formal votes for any expenditure.

That said, some votes might be - we authorize Director Y to have the trees pruned not to exceed $x,xxx.oo
SusanO3 (California)
Posts: 163
Posted:
Thank you both.
KerryL1 (California)
Posts: 14,550
Posted:
To Tim's point. There might be board policy that a particular officer or director is authorized to spend up to $XXXX on Metin items/issues w/o board approval.

Jodi ask yet can be delegated to management with a Board vote, which urs did long ago. Management (full-time,onsit) is delegated to authorize rea[irs to the common area up to $xxx w/o board approval.
KerryL1 (California)
Posts: 14,550
Posted:
To Tim's point. There might be board policy that a particular officer or director is authorized to spend up to $XXXX on xxxxx items/issues w/o board approval.

Expendiures can be delegated to management if permitted n by the Bylaws with a Board vote, which ours did long ago. Management (full-time,onsite) is authorized to approve proposals for repair to the common area up to $xxx w/o board approval.
AidylP1 (California)
Posts: 108
Posted:
It should have a Board vote because of the amount and it can be done at the next board meeting or call a special board meeting just for that topic. If the backflow wasn't an emergency there should have been a proposal to approve or get other bids.
DeanJ
Posts: 1,786
Posted:
Depending on your state, meetings may be electronic.

NA1 (Massachusetts)
Posts: 190
Posted:
Depends on the nature of the spending, the hoa docs, and your management contracts if any.

For us, emergency/stop loss spending like a stopping a major sewer backup and its cleanup does not require a vote because the manager is already authorized by board vote on contract terms to take necessary action. He works well with us and in the one incident we had kept us up to date in live action.

Repairs required to stay in code/maintain our housing permit or fix urgent issues under $2k do not require board action either, again because he is already authorized in his contract. If the problem will lead to immediate revocation of the permit then its dealt with as an emergency instead, but most things are discovered on inspection and usually have 30 days to repair. We have never seen this abused either and are always quickly informed.

The vendors are all pre-approved.
KerryL1 (California)
Posts: 14,550
Posted:
I don't think Susan's HOA has a PM, NA1. Your procedures sound a lot like ours.

As Aidyl notes, the Board just needs to call a special meeting of the Board, requires providing 4 day's notice to owners,, and vote on this expenditure. Unless it's an emergency, which it probably is not.

I do not know what Dean is saying. An Electronic board meeting, as I noted way above, may not be held in CA except for emergencies.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
consider amending your bylaws with an article similar to the one below:
MISCELLANEOUS  
The fiscal year of the Association shall begin the first day of January and end the 31
of December of every year, except that the first fiscal year shall begin the date of Incorporation.

No One (1) single Executive Board Member shall be allowed, at any time, to spend any
Association funds without prior approval by majority vote from the Executive Board Members. 
Any single member of the Executive Board who violates this rule will be held financially liable 
for said amount. Additionally, any Board Member(s) who know of violation of this rule and fails
to inform the community shall also be held jointly and separately responsible for said amounts.
Any Board Member who becomes aware of such violation shall notify the Members of the
Association at the first available opportunity or at the next scheduled meeting of the Association.

The Board is prohibited from spending more than $2500.00, on a single project,
regardless of whether it completes a project or if the project is done in phases. In any fiscal year,
once the Board spends a total of $2500.00, additional expenditures shall require a unanimous
vote of the Board. Any total expenses above $5,000.00 spent, in any fiscal year, shall be brought
before the Association, at a scheduled meeting, and approved by a majority vote of those in
attendance before funds may be spent. This provision does not include items accounted for in the
approved Annual Budget or in the case of an emergency. In this provision, an emergency shall be
defined as an immediate danger of injury, loss of life, or encumbered use of a residence as
normally intended, i.e., a main water line leak or sewer line breakage.

Any monies that are spent above our regular budget must have signatures of a majority of
the Board Members approval before receiving payment.

vis ta vie
DeanJ
Posts: 1,786
Posted:
Board approved recurring services ( utilities, landscaping contracts, mothly management company fees, ext) do not require board approval. Everything else does.
KerryL1 (California)
Posts: 14,550
Posted:
Whether "everything else does" require approval by the Board, Dean, depends on particular HOA's policy as noted above. And below.

Our multi-story condo HOA Bylaws, for instance permit our board to delegate many functions to our PM. The Board approved long ago that management may spend up to $2,500 for emergency repairs w/o board approval. This is in our contract with our new (2/1/24) MC.

TimB4 (Tennessee)
Posts: 21,061
Posted:
Quote:
Posted By DeanJ on 03/27/2024 1:47 AM
Board approved recurring services ( utilities, landscaping contracts, monthly management company fees, ext) do not require board approval.

Actually, these require board approval as well.
However, the approval was given when the contract was awarded.

The board is simply fulfilling the terms of the contract by issuing checks.

🎯 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