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GeraldT1 (<Not Specified>)
Posts: 519
Posted:
I live in a north New Jersey community that consists of two boards. An HOA (single-family homes and townhouses) and a COA (townhouses). Budgets were mailed by the boards that re-allocate the snow removal expense of approx. $30,000.00 from the COA to the HOA. There was supposed to be a resolution passed that permits the re-allocation, but it has not been ratified in an open meeting yet. The board procedure that achieved this is my real concern.

Reason is, there is a COA by-law that states the prior written approval of at least fifty-one percent (51%) of the Eligible Mortgage Holders is required for any material amendment to this Master Deed or to the By-Laws or Certificate of Incorporation including but not limited to, any amendment which would change any provision relating to: c) responsibility for maintenance and repairs.

Since it was always on the COA budget and in our prospectus for snow related expenses to be funded by the COA, I don't understand why the re-allocation isn't considered a material amendment that requires 51% of the eligible mortgage holders to achieve.

Can anyone provide insight?
RogerB (Colorado)
Posts: 5,067
Posted:
Gerald, do you know if the re-allocation of $30,000 is reasonable and justifiable? The by-laws may give the Board approval authority without ratification at a members meeting. Mortgage Holders may need to provide their name and address to be eligible. I doubt there are any that are eligible. Also, I think "c)responsibility for maintenance and repairs" could be interpreted as something more significant than re-allocation of funds.
GeraldT1 (<Not Specified>)
Posts: 519
Posted:
RogerB, Thanks. $30,000.00 is just the amount that the COA budgeted. What is actually being transferred to the HOA is the responsibility itself. The cost could fluctuate up or down depending on the storm frequency each year. In that way, the amount could become extremely significant. All unit owners of the HOA are eligible to vote since their ownership is recorded with the management company and the county clerk. I believe that some see an ambiguity in our by-laws that permits an interpretation.
Jonathan (New Jersey)
Posts: 14
Posted:
Gerald,
Generally, monetary decisions and resolutions are for the Board alone to decide, unless it deals with an amendment to the Master Deed or By-Laws, in which case the whole membership must vote (subject to your Governing Docs, of course).

We have a similar set up in my HOA in Central Jersey, but what you are talking about (a total shift of responsibility for snow removal or maintenance) may or may not be appropriate depending on your Governing Docs.

Also, is the Municipality chipping in for snow removal and such. If not, your Assn may want to look into that.

If you want to discuss more, shoot me an e-mail at: [email protected]

Jon

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