Alterations/repairs policy Home owner approval

What type of improvements is the board proposing? Do the documents define what constitutes an addition, alteration or improvement? Do the documents list whats defined as a reserve expense?

That could make a difference in the answer. For example, if we're talking about repainting the clubhouse because it's been, say, 15 years since it was built and now there are paint chips everywhere, I might agree this is a reserve expense that doesn't require a homeowner vote.

On the other hand, expanding the size of the restrooms to add handicapped stalls, installing a wheelchair ramp for the door and perhaps lowering cabinets for easier access might warrant a homeowner vote because that's an addition.

You might also take a look at your last reserve study to see what it says about projects the association must will plan for and consider if these decor proposals fall within those categories.

With todays prices, I think it could get a bit cumbersome to call for a homeowner vote every time every time a project exceeds $5K - doesn't take much to beat that threshold. The size of your community, its age and extent of what makes up the common areas are also factors that can influence the answer. Maybe it's time to amend the documents to define what constitutes an alteration, improvement or addition, and change the threshold of what requires a homeowner vote. Amending the documents will, of course, require homeowner approval.

Hi John, sometimes the legal definition of an "improvement" only means adding a NEW feature that was not there before - like the example Sheila gave about expanding the restrooms.

If that is the type of definition that you are working under, then "improvement" probably does not include maintenance or replacement of features that already exist.

In addition to searching your docs for a definition of "improvement", also search your docs for things like maintenance and repair of common areas. For example, in my condo docs, the trustees have the authority to:

"... manage, maintain, repair, restore, and improve Common Areas and Facilities..." (with a vote of the trustees only - not a vote of the homeowners)

One technical note - if you are dealing with old condo docs that were scanned, and you cannot "CTRL F" to search within the docs, you can fix this by using a tool called OCR. Just do a google search for "free OCR". There are a number of websites where you upload the PDF, it works its magic, and it comes back as a doc that is fully searchable!

The article is not applicable to your situation. Replacing existing furniture, window coverings, paint ect with like items is not an addition, alteration or improvement. It’s basic maintenance.

Are you talking about yet another project the board wants to do now or the $180k they spent in 2015?

Part of the problem is that the math didn't math and there was no explanation as to why after 2010. I understand why the reserves needed replenishing because of the snowfall, but the homeowners should have been told what the board wanted and why. Instead they appeared to use the reserves as some sort of slush fund instead of doing the harder job of reviewing the snow removal line item to adjust to higher costs and adjust the operating budget (and assessments) accordingly.

That may also be be why most of the board stepped down because they knew someone would start asking questions and they didn't want to be in the hot seat. This is why some boards wind up getting recalled, as they should. Reserves should never be used to cover deficits in the operating budget and assessments should be adjusted according to inflation because everything costs more in 2025 compared to 2010 or 2015.

If you're concerned about what happened 10 years ago, I understand why and if you're concerned the current board wants to do the same thing. You can't change what happened to the $180K, but now is a great time to take a good look at this part of the documents because some definitions on what constitutes an addition, replacement, etc., is needed. You may also need a formal policy on when and how reserves should be be used. That can also include changing the amount dictating homeowner approval.

To get things started, bring your concerns to the next board meeting with a written summary of what's happened in the last 10 years and ask them to commission a special committee to review reserve spending ans maje recommendations on policy, amending the documents, etc. Bring back your neighbors with you so they hear the response. If they balk, check the documents to see w h at needs to be e done to call a special homeowners meeting to discuss this - and if that leads to another meeting to determine if these folks should be replaced, do your thing.