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Special assessment--can a vote be changed by a BOD

Started by JW4 • 13 replies • 1205 views

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JW4 (Washington)
Posts: 31
Posted:
Hi. At our last meeting, we voted to have a small assesment for a smaller project; $100.00 per unit.
Can the BOD decide not to assess units afterall and take it out of operating funds when it is not in the budget? Normally, I would not care but the whining the President does about how we have no money for these types of projects gets old. I just wonder, if in the next meeting she tells us that they decided not to assess the community if that is legal without another vote? I think not.
EllenS1 (Florida)
Posts: 1,148
Posted:
JW,

If the vote passed with the required percentage according to your covenants the board can not change it.
KirkW1 (Texas)
Posts: 1,665
Posted:
It would depend on the wording of the measure. If the wording is that the assessment will be charged, then no it can't be changed. If the wording were to authorize or permit then it could be changed.

Aside from wanting the president to shut up, the only reason to complain is if this will cause later peril of the association finances. But someone needs to come clean on them. Either you need the assessment or not. The whole thing should be out in the open.
SusanW1 (Michigan)
Posts: 5,202
Posted:
This board has some "esplain'in Lucy" to do as to why there was an assessment vote, and then it is not needed.

MaryA1 (Arizona)
Posts: 7,043
Posted:
JW,

First of all, just because a particular project is not in the budget does not mean it cannot be undertaken using operating funds. It's not uncommon for an unplanned expense to come up that requires attention during the current year.

Secondly, I don't know that it would be a violation of the gov docs if the board chose not to collect an approved special assessment. Seems to me the members would be quite happy to hear this!

Lastly, I'm curious to know why you would be upset to learn that the special assessment approved by the members is not needed afterall. Why would you want to pay another assessment if you really don't have to?
JW4 (Washington)
Posts: 31
Posted:
Susan, I agree. The President complained how broke we are for "non-essential" projects so we voted to all chip in $100.00 as an assessment.
However, this am, I got notice that our annual meeting is in 10 days and the door painting in on the agenda so we will see what they intend.

Just curious, you have alot of experience in these matters. Have you ever seen an annual meeting where the annual vote of the BOD is the first thing on an agenda? They did this last year. We are small but I am holding them to task to work within our documents (it states just what the order should be and I sent them the section to review) because they are beginning to do it there way shall we say. We are small but casual just does not work to everones benefit.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Our annual vote for the BOD is the main reason for the annual meeting.

It is always the first thing on the agenda.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Our election is held at the end of the annual meeting. That's after all the end of year reports and vote to approve the Treasurer's final report to the members. Then any new officers can be handed the gavel, since the election means that the "power" on the board has changed.

In any case, an agenda should be in the hands of the members at their annual meeting.

JeffT (Maryland)
Posts: 83
Posted:
Once the elections take place, id the board immediately turned over to the newly elect BOD. Assuming there is nothing in the by-laws.
JW4 (Washington)
Posts: 31
Posted:
Our documents state that the new BOD is voted on 2/3 thorugh the agenda. So, that is how it should be done. Since we are a small community and the politics are not the best it will likely be the same 3. Our documents do not restrict tenure.
Thanks for you help yet again!
SusanW1 (Michigan)
Posts: 5,202
Posted:
WHO voted to approve the assessment?

THAT is the group that must recind the passed motion.

If your Membership voted to approve ANY motion, then the Board has no right to disregard or change or amend or recind it.

the minutes show an approved motion.
Sorry, the minutes of the next meeting need to reflect that the motion has been recinded.
Follow your bylaws for the vote needed to do this.

MaryA1 (Arizona)
Posts: 7,043
Posted:
Susan,

I don't believe this was a vote taken as a result of a motion being made. It was a ballot initiative asking whether or not to approve a special assessment. The members approved it; however the board is now saying they don't want to collect the money. IMO, if they don't need the money, there's no reason to collect it even though the members approved it. What member is going to be upset about that?
JW4 (Washington)
Posts: 31
Posted:
Mary and Susan,

The only reason to be concerned is that the Board tells us we don't have a couple of hundred dollars to replace plants or fix a fence. So, we need this assessment which we all voted for $1,000 to paint doors.

We have to save money per out reserve study. This kind of money should be made as an assessment of $110.00 per unit to accomplish our goals. If they tell us that this will now come out of operating funds at the annual meeting I will object and question why this changed over a 5 week period. Then we need to vote again that rulling will be the final answer.

MaryA1 (Arizona)
Posts: 7,043
Posted:
JW,

OK, now I understand! The special assessment was necessary to fund the reserve account but now the board is saying operating funds can be used for the painting. First of all, I don't think it's wise to fund the reserves by a special assessment. Monies should be put into the reserve account each month, year after year. A special assessment is only a one-time deposit. The only time a special assessment would be the proper thing to do is if the reserve fund is depleted and a maint/repair project needs to be accomplished immediately.

From what you're saying I'm of the opinion that there isn't anyone on the board capable of handling the assn's finances. This is not good! Perhaps it's time to change the make-up of the board.

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