Change in Security

Wow! Maybe your board knows something you don't. Or maybe they know someone in the security business. If $35 increase is the allowed 10%, then your dues were already $350. What are you getting for this (in addition to 24 hour security?) If you're not gated, what does the security guard do? I'm thinking out loud: we have three entrances to our HOA, so how would a security guard handle that? The board needn't get member permission to spend the allowed amount. Only if it goes over. You need to replace the board if enough are unhappy with their decision(s). Harold

You asked: Do we as homeowners have any recourse over this decision by the board?

The answer should be in your bylaws. If the BOARD has the power to raise dues, then the membership is at their mercy. They hired this security firm, they had to have had a plan for paying the bill. Where did they expect to come up with the money?

However, if the Membership needed to approve this security firm contract and accept a dues rate, how come you did not know this?

Yes, you do have recourse. The Membership can recind the motion to hire the security firm, but it has to be at a meeting and requires a vote of the membership.

Do your bylaws allow Special Meetings called by Members?

Yes, you do. You elected them to office and you can replace them at the next election if you don't feel they are doing a good job. Remember though, that your neighbors may not feel the same way you do and may not vote to replace these officers.

The reason an HOA has a Board of Directors is so every issue, every expense, etc. does not have to be brought to a membership vote. We can assume that the current BOD discussed and researched this issue and voted among themselves (as representatives of the membership) to implement this security policy.

Well, we lost - the board will keep the 24 hour security. However, there was a heated discussion and I think it woke up people to keep involved in these decisions and perhaps replace this board in the spring.
Thanks for your input.

You still have not answered HOW the Board raised the dues - was there a previous vote by the members?

and HOW they plan to pay for this additional security bill.

JoanL and Susan,
I never have thought any kind of built in increase is the way to go. We have a built-in CPI and I fight that every year. Most documents state the budget will be approved by the members. I believe that they do not abide by this when the have discrestionary raises. What is so troublesome for any Board to justify any increase.

It also adds up to a lot of total money that the Board can use. You do 5 years at 10 % and see how much money that adds up to, more than you would imagine. And it is also just as wrong if the Board decides they are not going to raise due 10% this year, for example. How can the board dictate not to raise the dues, that requires justification also. This is just someone's idea of a smooth move to give power to someone that don't need the power. The board has th obligation to ask for more money, or not. Period.

My point exactly,
What good does the cap do except confuse the issue. Any money proposed in an annual budget should be brought before the members. If you haven't yet you will have board members believing they can raise the dues 10% without notification to the members. And if the members object they have the power to levy it anyway.

Our board members and Manager believe they can raise dues set as the CPI, what ever it is. They raise the dues and 4 months later have the annual meeting. The purpose of the annual meeting is to discuss the budget, for one thing. This is wrong and the lawyer apparently says they have this power, because the documents say the Board can raise the dues to the CPI with out member approval. This clause was added as an amemndment years ago. The Master deed says the budget will be discussed with the members at the annual meeting, that has not been changed. The clause was put in there for no other reason than to adorn the Board with power they don't need and in my opinion is illegal anyway.

And of course why are we going through this useless theater anyway? The board wants to raise the dues, justify it, the members don't want to the pay the dues, the Board should have no power to do it, at an annual meeting. After the meeting is over and the Boards wants to declare an emergency, because the property is threatened, they have the power to do it, if they can justify it, but they don't need permission.

Has anyone looked at the power the Board has? Awesome. Maybe more than the Federal Government in some areas. The problems we see is not with the Board doing what they can do, the problem arises when the Board trys to change the documents for convinence. Certainly not all, because we all have seen good boards.

All should read your documents concerning what can happen if the place is condeemed, made unlivable, floods, catches on fire or blows away or the building falls down into the garage.