DavidA7 (California)
Posts: 179
Posts: 179
Posted:
Recently our Board removed money from reserve and placed it into general funds, discussion in previous post, without following legal procedure as outlined by our CC&R's and the Davis Sterling Act. The amount removed was 7K. When I inquired about what it was for, apart from the legal issues of transferring the money, I was told it was for property repairs.
During the past month the HOA resurfaced a deteriorating walk area of the common area. OK great that is capital property repairs but yesterday came home to find all new planters/plants that had to cost some serious money had been placed into the common area. Over the past year I have asked the HOA board to conduct infrastructure repairs as our property is falling apart and I was informed we don't have enough money because of 1 unit in foreclosure that hasn't paid dues in almost 2 years and they don't want to place a special assessment due to tough economic times. Never-the-less the Board went out and spent significant money on planters and plants. We already had some plants and planters prior to the resurfacing but they just removed them and put the new ones in. I don't mind the property improvements but not when there is more serious issues on the property that need to be addressed.
I can only expect that the money for this came from the money that was transferred from reserves to general budget and plants/planters don't qualify for reserve type repairs as they are not listed in our reserve study as capital repairs.
The Board won't respond to any request to deal with this issue of transferring money from reserves to general budget and then the misallocation of these funds. Now with reserve money being spent on non-capital repairs I'm worried about the long-term implications to reserve funding and capital expenditure repairs.
OK, my question is what can I do apart from selling which is not an option? The Board won't hold HOA meetings to discuss, won't follow the laws governing it, and they just spends money however they want, and is leaving the membership at financial risk. The membership won't conduct a recall or vote them out as we only have 8 units and the Board has themselves (3 units) and at least two other units in their backpocket thus preventing a recall.
During the past month the HOA resurfaced a deteriorating walk area of the common area. OK great that is capital property repairs but yesterday came home to find all new planters/plants that had to cost some serious money had been placed into the common area. Over the past year I have asked the HOA board to conduct infrastructure repairs as our property is falling apart and I was informed we don't have enough money because of 1 unit in foreclosure that hasn't paid dues in almost 2 years and they don't want to place a special assessment due to tough economic times. Never-the-less the Board went out and spent significant money on planters and plants. We already had some plants and planters prior to the resurfacing but they just removed them and put the new ones in. I don't mind the property improvements but not when there is more serious issues on the property that need to be addressed.
I can only expect that the money for this came from the money that was transferred from reserves to general budget and plants/planters don't qualify for reserve type repairs as they are not listed in our reserve study as capital repairs.
The Board won't respond to any request to deal with this issue of transferring money from reserves to general budget and then the misallocation of these funds. Now with reserve money being spent on non-capital repairs I'm worried about the long-term implications to reserve funding and capital expenditure repairs.
OK, my question is what can I do apart from selling which is not an option? The Board won't hold HOA meetings to discuss, won't follow the laws governing it, and they just spends money however they want, and is leaving the membership at financial risk. The membership won't conduct a recall or vote them out as we only have 8 units and the Board has themselves (3 units) and at least two other units in their backpocket thus preventing a recall.