Capital Improvements

Our BOD has recently sent out a proxy to ask members for the right to use Reserve Funds to pay for snow removal this winter. The board underbudgeted and then due to back to back blizzards here in MD, they are at a loss and looking at the reserves for help.

My concern is that our CCR's specifically state "Such funds shall be used only for capital improvements and/or replacements of Common Area facilities of the Association upon the approval of a majority of Owners."

I don't think that snow removal constitutes a capital improvement.

thoughts?!?!

Our documents do not allow them to use the money for anything like that...only capital improvements. The board has been working on a plan to allow this money to go to a playground for the children. The extra snow removal cost will put a HUGE dent in our Reserves and even with the maximum 5% increase on dues next year (maximum allowed per our documents) it will take us years to pay this money back to get a playground. Our community had over 5 ft of snow total in December and then in February.

Our CCR's allow for a special assessment. I just want to make sure this is done legally.

One of our current board members just went through great lengths to force someone on the board to resign (emails, bullying tactics) because he thought they didn't know the CCR's well enough. If this isn't legal, I want to make sure he can't get away with it. If our documents say it can only be used for capital improvements, regardless of the votes of members...it only takes one member to raise the red flag to an attorney and then our dues will have to go up to pay back the Reserve Fund as well as any attorney fees.

We do have members who would do such things because they truly dislike the HOA that much!

Christina,
Tell us why you brought up this Board Member that chased another member off the Board by bullying and e-mails, etc.

How does this connect to using money from a reserve account or doing a special assessment. You stated you just wanted to know if a special assessment for snow removal was legal in your HOA. All things being equal, which means little, the board could create a situation where they could make a special assessment for snow removal legal. But, you have your documents in front of you and it is rare that documents duplicate each other and most have core values and then adjustments are made to address the particular HOA. You will notice Mary is not citing legal case law, and is giving opinions, good opinions I might add.

I brought up his bullying tactics because the board members that he ran off and other residents are tired of his tactics and will do anything to see him fail. Our HOA board is no longer looking out for people's best interest, only their own and it really has turned the neighborhood into a war zone.

Law suits threatened against board members and other residnets for filing complaints against neighbors, police phone calls, neighbors vandalizing other neighbors property...the list goes on and on.

If the market were better and I could sell...I would have left as soon as all these problems started. But unfortunately I am stuck here for a while and just wish there was a way to get through this, but this board member is slowly but surely reducing the limited amenities we have...parking...money for a playground so the children don't play in the courts, which leads to damaged vehicles.

The other board members didn't really agree to asking to use the reserve fund to pay for snow. They would rather work out a special assessment or possibly work with the attorney and contractor because we have 25% of our homeowners in collections right now owing the HOA enough money to pay these bills (and then some). But he once again...pounded his fist and they felt forced to vote as to avoid harrassing emails. Hime and his wife have sent MANY harrassing emails to residents and board members in the past.

My neighbors, who have been promised a playground for their children for the last 4 years are revolting against him and wanted to know if his actions are legal...so I came here and asked.

We are trying to work together as residents and get the board to vote for the better of the community, not themselves. It is just very hard when more than 50% of our community is rentals and those people aren't there long enough to truly care, then we have 10% vacant or forclosures.

I actually moved into the neighborhood knowing about the HOA and didn't have a problem with the CCRs. The problem is the way the board tends to interpret them the way they see fits. And sometimes it is not what the attorney agrees with. Or they will ask the attorney to review a specific statement and then apply it to everything, not just that section of the CCRs. We got a letter in the mail yesterday that stated a voting percentage incorrectly. I think that this was done as a fear tactic so the members that don't have copies of their own CCR's think they have no recourse since they think they need 95% to vote, which is not accurate. It's been stated aloud at some previous meetings in which no residents were in attendance..."We can do it this way, they'll never know the difference. Most of them don't read the By-Laws anyway." Of course this statement was not in the minutes...I just know because I served on the board last year before all these issues started. I stepped down when I realized that the board thought they could act like this.

Most of our members are uneducated in our rights as members and don't think that they need to learn. They trust that the board is acting on their best interest. And then are completely shocked when we get new regulations in the mail that favor one resident over another. Very naive in my opinion for them to elect someone by proxy and then not to attend a single meeting to observe the voting and discussions.

The board has also been so laxed in enforcement in the past, that no one seems to think the things the board is voting on will matter. They think they will be able to get away with everything just like they have in the past. I am 100% for the BOD enforcing the regulations, but they need to be fair accross the community and some of the board members themselves are in violation or they don't enforce on their 'friends' that helped elect them.

My opinion is that they are elected by the MEMBERS and should serve the MEMBERS equally. They have no care or concern for the people that got them on the board in the first place. And residents see what is happening and don't want to volunteer because they don't have the time or energy to deal with the kind of abuse they see.

This board member is on his first year of a three year term, so the only way to have him removed is a petition. But even with that petition and then a majority vote to have him removed, all he has to do is come to the annual meeting with enough proxy votes to elect himself to the board again. Since he tends to favor the members of his own court, which is roughly 20% of the membership, they all give him their proxies. Especially since it benefits them to have him on the court bending and interpretting the rules the way that fits them. And since in the past five years, so few people attend the meetings, that litterly the 5 that show up to the annual meeting, usually are the board members. The rest of the quorom is obtained via proxy.

I have written a letter to all residents about how we need to stand up for our rights. Due to my job and my 2 hour commute each way to work I can't hand deliver it or I would! I am hoping that they see that they have rights and need to stand up for those rights, but in a professional, adult manner. The bullying tactics cannot be tollerated anymore.