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NancyM30 (Massachusetts)
Posts: 1
Posted:
The association where I live has decided to go forward with a deck replacement project.

5/23: Unit Owners Mtg: #The Board hopes to do deck replacement in the next 1-2 years. By possible taking out another loan.

11/23 & 12/23 Unit Owners Mtg: “The Board will be looking into the proposals and also the financing and will hold another meeting in January 2024 with owners to provide additional information on the planned replacement of the deck

1/24 Mtg: Only BOT, no unit owners were notified.
- No one knows why the 1/24 mtg did not take place to allow a discussion with unit owners

1/24: 6% condo fee increase (Usually 2-3 %)

3/6/24: Unit Owner’s Mtg:
-Contract was already signed on 3/1/24 for the project
-A 8x8 deck was allotted to each unit owner
-Previous deck replacement was in 2003, many owners enlarged their decks at that time or have since bought a unit with a larger deck size.
-Most unit owners only have issues with floor boards, not the whole deck

-For those with larger decks (whether they paid back in 2003 or bought it that way) are astronomical (up to 24k+) causing a financial hardship on most owners.
-Only have until 4/15/24 to come up with ½ deposit and final payment must be paid 3 weeks in advance of construction

Issues:
-Many unit owners have requested an “Emergency Unit Owner meeting with the mgmgt company and BOT” – no response as of yet
-There is a petition going around to “Pause the Project”. Owners want:
- To see all the bids that were submitted
- Copies of Meeting recordings – not supplied

Question: What can we do to "Pause the Project" to allow more time for questions, financing. What rights do we have as unit owners besides hiring an attorney to demand that our BOT and management company allow us to add our input?
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By NancyM30 on 03/26/2024 6:14 PM
What rights do we have as unit owners besides hiring an attorney to demand that our BOT and management company allow us to add our input?
You have only the rights given in the bylaws and state statutes. You should study intensely the bylaws; identify each bylaw being violated here; and send a demand letter. If you want an example of a demand letter, then quote verbatim a bylaw that is being violated, and I will draft a demand letter for you.

I see the Mass Nonprofit Corp Act //requires// the bylaws to provide for a way to remove the directors.
See https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter180/Section17 ? Do you see a section on removing directors in your bylaws?

Can you quote verbatim what your bylaws say about owners calling a Special Meeting?

Based on what you said in your first post, in my opinion the responses you receive here will only help prepare you for a meeting with an attorney.

Huge hurdles, in my rather extensive experience:

-- A contract has been signed. It was more likely than not lawfully signed. Getting out of the contract will be difficult and may result in legal action by the vendor.

-- Identifying how much deck must be replaced for each unit, under the law, will be difficult. Owners and the Board must recognize that the enemy here will likely be the legal process itself. The cost of attorneys; the long time it takes to get a ruling from a judge; the uncertainty; and the pyrrhic nature of a victory argue for compromising and settling this among yourselves.

-- Getting owners to quit whining because they feel 'wronged' and instead getting these owners to sit down, study the bylaws and state statutes, and identify exactly what bylaws and statutes have been violated.

Please answer all questions that people here ask you. When responding, please identify the person to whom you are responding.

KerryL1 (California)
Posts: 14,550
Posted:
Need some basics, please.

How do your CC&Rs define these decks, i.e., are they exclusive or limited use common areas? In the doc, who is responsible to repair or replace the original decks?

Are these decks listed as components in your reserve study? If so, does the study say something like "Replace 90 8' x 8' balconies & an estimated life & est. cost?

Are there any any Architectural Guidelines or rules about deck "additions"or enlargements etc? Put another way, were all of the enlargements, etc. done with HOA approval? Do you know if, by chance, the HOA actually paid for some of these enhancements?

On first glance, that the HOA pays to repair/replace the original 8X8 decks, but leaves any additions, no matter how old or new up to owners to pay to repair/replace seems reasonable to me. Why should all owners chip in to pay to replace MY deck, that only I may use, that's been added on to several times with/without approval even if before I bought my unit?
--------------------------------------------
Bylaws: What are "unit owners meetings?" I'm not familiar with that language* and wonder if it's specific to MS? Does it mean what is called in many other states meetings of the members? Or meetings of the Association (same thing)? During these, owners have rights to speak & vote on agenda items?

The 1/24 BOT meeting excluded owners. May BOT meetings in MS exclude owners? Or may owners be excluded only from executive session board meetings? Which might include forming contracts? If the contract was fired in executive session, most likely the Board does not have to provide copies of the minutes to owners.

Most state laws do not require that owners have access to copies of bids & proposals. What about MS?

Your Bylaws will show you how to call a meeting of the owners, which might be called a "special" meeting of the owners. How my much notice to owes is required to hold one? Do your Bylaws refer at all to "emergency mtg of owners? Or does MS corporations code?

From what you've written, Nancy, the Board seems to have acted legally. But I can't be sure about the legality of the 1/24 meeting since I don't know your Bylaws or MA statutes.

*Tho' many years on this forum.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Nancy

When I lived in a townhome association in MA the decks, do to shoddy construction and cheap materials, needed to be replaced. The association had the reserves to pay for existing deck replacement but an option was offered. Expand the present deck at a cost of $X per square foot which the owner would pay for. I dealt with the builder doing the deck replacements and was able to negotiate a good price to expand my deck.
KerryL1 (California)
Posts: 14,550
Posted:
About 30 or our 300 elevated concrete & steel balconies need their surface tile, waterproofing-- in some cases due to water intrusion into the unit. They are "exclusive (limited) use common areas." The replacement tiles are much larger than the original although the same color. Some of these units have more than one balcony.

The Board approved a motion that if owners want a second balcony re-done though it has no problems, or other enhancements, e.g., changes to the structure of the door to the balcony, the owner pays for this enhancement. We were restating our CC&Rs so included:

8.5 "COST SHARING ON ASSOCIATION REPAIRS OR REPLACEMENTS. If the Association undertakes the repair or replacement of Common Area components pursuant to the Declaration, the Board may in some cases request Owner cost sharing for the project if all or some part of a repair or replacement is deemed optional, an upgrade or extra by the Board. If an Owner agrees to cost share in a repair or replacement of a Common Area component, the Owner will be solely responsible for the payment of the pro-rata share of the overall repair or replacement cost attributable to the Owner."
NA1 (Massachusetts)
Posts: 190
Posted:
Nancy, your tag says Massachusetts, but Kerry refers to MS, not MA. I'm answering assuming you are in MA.

I think if you have concerns, you should talk to a lawyer who knows about condo law in MA. No one here can give legal advice, and law in MA is a bit convoluted, consisting both of multiple pieces of legislation and a fair bit of case law. Be wary of using someone who doesn't actively do condo law in MA. Here is a starting point - https://www.mass.gov/info-details/condominiums

I am assuming you're talking about a condo, not a co-op, since co-ops are uncommon here, and condos have unit owners and co-ops have share holders. It can matter, since the laws vary. Co-ops are regulated by corporate code, condos are 183A. There are also HOAs for single family homes, which, I think, are only corporations. If you are in a condo, then most requirements for meetings are in your condo docs because 183A's requirements are limited, and minutes are also quite limited, being only "to the extent such minutes are kept" (183A §10 c(3)). There is no requirement that there be recordings. So whether you can get minutes or recordings depends entirely on how open your board wishes to be. They likely weren't required to have any open meetings unless your condo docs say so, so probably the 1/24 meeting was not required to be open.

Anything you have a right to have is spelled out in 183A or in your condo docs. So as ElleN and Kerry have both pointed out, you need to carefully read your condo docs (Trust/corporate bylaws/other organizing doc, and Deed). These are registered in your county registrar of deeds. There may be other documents registered there too - pay attention to those. The definitions given in your condo docs will likely specify the terms under which the decks are replaced and who pays for what.

I doubt the owners get much choice about what work is done on their individual decks when the work happens - otherwise you can have 100 owners all arguing about whether it needs to be done at a particular moment. That's what you get a board to do.

I would also be really surprised if they shared the bids. Bids are often submitted in confidence. That assumes they were actually able to get multiple bids, which in the Boston area, at least, has turned into a real problem.

Last point - if I were on your board I would not vote for financing. That passes an individual owner liability onto the association as a whole, since the association becomes the owner's lender (the note is in the association's name, so everyone is liable for it even if they pay up front). As long as the board has acted legally and within the confines of the condo docs, there can be assessments, which owners should realize. It's painful, but that is a part of condos.

DeanJ
Posts: 1,786
Posted:
The bottom line, past boards did not properly fund your association and may not have properly explained the forward maintenance costs of expanded decks.

The 2-3% fee increases you mention fall well short of inflation for the last 3 years. Inflation in 2021 was 7%, followed by 6.5% and 3.4% in 2022 and 2023. Skilled labor rates have outpaced those values. Your board can’t continue to charge the assessment you prefer to pay and 6% increase in 2024 is likely to be followed by a 6% increase in 2024 and 2026.

The fact your board has to consider a loan means the assessments did not sufficiently fund reserves. Interest rates for an HOA are likely around 9% today. The effected homeowners can likely obtain a interest rate less than the HOA can.

Realistically, you can’t expect the homeowners who didn’t expand their decks to pay for the repairs for those units with expanded decks or to pay the principle and interest toward repairs for the expanded decks. Normally when an HOA allows an expansion of a limited common area (deck) the maintenance of the expansion becomes the responsibility of the homeowner - regardless if they purchased after the expansions .

Your board is in a position with few options and they have considered all the options.

The homeowners complaining , whining, wanting to slow things down, performing minimal repairs that will cost more over time and paying attorneys isn’t going to change the facts. Your board has adopted what they believe is the best option and the matter really isn’t open to discussion or modification.

The day of financial reckoning has arrived.

KerryL1 (California)
Posts: 14,550
Posted:
Ah, of course, my MA for Mass is wrong!

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