Reserves

Started by PeggyW3 • 4 replies • 116 views

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PeggyW3 (Michigan)
Posts: 73

Posted:

In Michigan, do we have to get permission to take money out of our Reserve account? Our Association uses it for large expenditures etc. but does not get approval from the community. I find nothing in the Documents that prevent us from withdrawing funds from the Reserve account. Thanks for addressing this question.

PeggyW3

ElleN (Idaho)
Posts: 1,334

Posted:

Quote:

Posted By PeggyW3 on 12/04/2024 10:16 AM
In Michigan, do we have to get permission to take money out of our Reserve account?

The board does not need permission from owners to take money out of the reserve account and spend the money on reserve components.

The authority for this comes from the bylaws. Look for a Bylaw that authorizes the board to manage the HOA; determine spending and any limits on the board in doing so. The limits are almost always few, if any.

Owner rights as given in the bylaws are few. On the other hand, owners always have the right to replace directors.

KerryL1 (California)
Posts: 14,550

Posted:

Our HOA Board's authority to spend reserve funds are in the CC&Rs. Perhaps in MI they're in the bylaws?

KerryL1 (California)
Posts: 14,550

Posted:

opps--Board's authhority IS in the CC&Rs. Owners' rights are also in the CC&Rs. But MI may be different.

KerryL1 (California)
Posts: 14,550

Posted:

opps--Board's authority IS in the CC&Rs. Owners' rights are also in the CC&Rs. But MI may be different.

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