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Forums > Homeowner Association > HOA Discussions
Subject: Meeting Called to Expend Monies
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Author Messages
MaureenM1
(PA)

Posts:161
04/16/2009 10:06 AM  
Our board informed us that we are having a "cash flow" issue and want to pay bills, such as snow plowing in the following ways

take from Reserves
take 1/2 from Reserves and increase our monthly maintenance fee
impose a special assessment of approximatley 400.00 per unit.


Our CCRs read that if the Executive Board wish to expend or borrow monies or incur expenses in an amount greater than 5% of the
aggregate of all budgeted expense for the fiscal year, such expenditures must have the prior approval of two thirds of all Unit
Owners, at either a regular meeting or a meeting called for such purpose.


My question is: Will a special meeting need to be convened so the owners in the development can vote on this issue even though we are under declarant control?. The declarant owns 9 of 28 homes. There are 14 unsold lots, however, are they considered units since there are no townhomes built on them and the declarant is not paying maintenance fees on unsold lots? Will the declarant be able to vote on the unsold lots as well as the units he owns?


MaureenM1
(PA)

Posts:161
03/21/2010 6:16 AM  
Our PM just sent me and one other board member our budget and financial report. In the report it states that
our President authorized the PM to take over 10,000 out of our reserve fund to pay excess snow invoices.

We were to meet with the President and PM and set up a date and at the last minute our President cancelled. The PM
is now on two weeks vacation and sent this before she left.

My question is can the President on his own make these decisions without anyone else's input? I know he is in control
so I believe the answer is YES.

The other board member is the CFO of a major coporation and has much more expertise in the area of finances. The PM is also
advising the President to change the bylaws to state the upfront maintenance monies paid at clsoing can be used for operating
costs. Also he wants to raise the monthly dues from 190.00 to 210.00 a month based on another townhome development he built.

MaryA1


Posts:0
03/21/2010 8:02 AM  
Maureen,

I think we've discussed this before -- while the developer is in control he has the authority to do as he pleases mainly because he controls the votes of the board members. If I recall correctly, you and one other homeowner are members of the BOD. That leaves the developer and 2 others as the majority votes for BOD matters. The other 2 directors are most likely friends, associates or employees of the developer and will vote as he wishes them to vote. Although you and your fellow member can argue your position, I doubt it would do much good if the developer is adamant about his position. Just get used to the fact that as long as he is in control things will be done his way.
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Forums > Homeowner Association > HOA Discussions > Meeting Called to Expend Monies


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