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DianeB6 (Minnesota)
Posts: 8
Posted:
Our association's past Board of Directors with the recommendation of the Architectural Committee offered to the home owners to pay for the labor cost of window replacement. Well as you might image that this can get very costly considering the number of windows that could be replace. Anyway, now some homeowners are asking us to pay for the labor of their windows that were installed before the past Board made this offer. Our bylaws only cover exterior window frames, and I don't think the new Board should pay anything toward windows. Has anyone ever come across this issue and how did they resolved this issue.
GeorgerwilliamsW (Indiana)
Posts: 975
Posted:
I was involved in a very similar situation about 20 years ago in Chicago. A 26 story cooperative high rise decided to assess all units for the cost of replacing 60 year old drafty windows to save energy. Independently, several owners had recently replaced windows as part of a complete apartment remodel.

A lawsuit was filed.

The court held that the cooperative was not obligated to lower the assessment to reflect the costs already incurred by some residents. The decision to replace windows as part of a total apartment remodel was a voluntary one by residents--it had not been mandated by the cooperative.

Keep in mind this was a cooperative building, not a condo.

It is gonna' be a sticky wicket for your association. Thoughtful compromise may be in the very best interests of everyone.
GlenL (Ohio)
Posts: 5,491
Posted:
Diane, I have a couple of questions. Was this ill thought out policy approved by the Board or did the president just announce it? Do your CC&R's allow for such a payment? Has any money been paid out?

If it was not approved then you're off the hook because the president doesn't have the authority to obligate the Association for such a pay out and I would suggest that the H/O could go after the president personally. If the BOD approved it and it's not allowed in the CC&R's then they should go after any of the members that voted for it personally. And if any Association money has been paid out for this in violation of the CC&R's then the Association should go after whoever approved it for restitution. You probably will need the Association's attorney to untangle this mess.


Studies show that 5 out of 4 people have problems with fractions
SusanW1 (Michigan)
Posts: 5,202
Posted:
If this new policy was passed (by QUALIFIED motion) at a duly called meeting of the board and noted in the approved mintues, then it becomes effective the minute it passed - not retroactively.

Tell me ----There must have been reasons for the passage of this offer to pay labor costs.

I am SURE they did a feasability and cost analysis of the entire project and had a budget, with the potential funds identified AND available.

DIDN'T THEY???!!

DianeB6 (Minnesota)
Posts: 8
Posted:
Glen, you asked was this ill thought out policy approved by the Board or did the president just announce it? There was an announcement made at our annual meeting, by a Director, who is also the architectural chair. I'm unable to locate any other formal documents other than a motion to pay up to $900.00 for labor cost for at two locations. The windows were replaced, and the association paid the $900.00. Our CC&R does not allow for this.
DianeB6 (Minnesota)
Posts: 8
Posted:
Susan,

This was not a new policy. A letter was sent to the homeowners by the Architectural Committee regarding replacement of windows which stated that the Association does not replace glass or windows; however, subsequently, the Association has paid for the installation needed to be done by the homeowner. I'm still trying to locate the letter. The only motion I can find in the minutes was specifically for two residents and the assocation paid $900.00, there is nothing in the minutes that mentions a new policy being passed, there were no amendments to the governing documents. The past boards have messed things up so badly, that the new board is trying to set straight, this is just one of many we are trying to clear up. Thanks for your response. I know how to handle this now.
DianeB6 (Minnesota)
Posts: 8
Posted:
Susan, there was not a thoughtout process behind this decision. There was not a feasability and cost analysis of the entire project and there was no budget. It was a fly-by the seat of their pants decision, and we're going to put this issue to rest.
SusanW1 (Michigan)
Posts: 5,202
Posted:
The policy is effective the date that the letter went out announcing the payment of the window installation.

You can't cover any work done BEFORE the letter, unless it stated that you would cover previous installations.

Your board should be cuffed in the head for this knee-jerk gesture of offering to pay for something when it did not pre-plan for the expenditure.

Ye-gads, what were they thinking!!!???

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