Homeowners paying for board's gross negligence

i doubt you can halt the assessment, but maybe others will give you advice on that.

One course of action is to sue the contractor that was hired originally, and get the money back from him. that's an action the board must take, of course.

Susan if you re-read her post she has two buildings A&B with separate accounts and she feels that money was improperly paid from one account for work in the other building and now she is being Emergency Assessed because of it. The way I read it in California the BOD can Special Assess up to 5% of the gross budget without an H/O vote or unlimited amounts for an Emergency Assessment which is what she is evidently facing.

FelineP - You stated several members of the board stepped down, one maintenance man let go. First, what precipitated their departure, ex. was their an election, a recall? How many board member seats in total are there? First thing both A and B units need are at least 3 independent contractors to assess the damage and dry-rot. Then you need to get multiple bids on the project. What is your annual budget? Does $40,000 to $80,000 exceed it? Remember GlenL wisely sighted the 5% of annual budget from Davis Sterling. www.davis-sterling.com Click Davis Sterling in the upper left side, then click on Index of Laws, and go to Article 4 Reg-Special Assessment. It states:

(b) Notwithstanding more restrictive limitations placed on the board by the governing documents, the board of directors may not impose a regular assessment that is more than 20 percent greater than the regular assessment for the association's preceding fiscal year or impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses of the association for that fiscal year without the approval of owners, constituting a quorum, casting a majority of the votes at a meeting or election of the association conducted in accordance with Chapter 5 (commencing with Section 7510) of Part 3 of Division 2 of Title 1 of the Corporations Code and Section 7613 of the Corporations Code. For the purposes of this section, quorum means more than 50 percent of the owners of an association. This section does not limit assessment increases necessary for emergency situations. For purposes of this section, an emergency situation is any one of the following:

Any amount from $40,000 through $80,000 that is more than 5% will need owners to vote in favor. However the work needs to be done so I would keep up the pressure of checks and balances on the Board until the work is done. If the budgets of A & B can't be commingled than A must pay for A, B must pay for B. However, coordinating the work to be done at the same time, and in phases may keep the costs down. It's called collective bargaining and in everyone's best interest the community is in tip top shape to be competitive with the marketplace. There's no separating that the value of the community is at stake.

Feline - do you have D&O insurance in place with your HOA insurance policy?

If not, this is protection that you need in place.

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