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Subject: Limitations of Rules and Regulations
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Author Messages
JanineR
(Tennessee)

Posts:65


02/18/2021 9:42 AM  
The BOD and management company added a rule that conflicts with the Master Deed. Can they do that?
(condos)

---------------------------
Our Master Deed says this:
“Except as reserved herein by Developer, there shall be no alteration or further improvement of the Common Elements without prior approval in writing by the owners of not less than sixty-seven percent (67%) of the total allocated vote of the Association, except as provided by the Bylaws, and any such alteration or improvement, if undertaken, shall not interfere with the rights of any mortgagee or Unit Owner. The shares of any cost of such alteration or improvement shall be assessed to the Unit Owners in accordance with their interest in the Common Elements. There shall be no change in the shares and rights of a Unit Owner in the Common Elements that are altered or further improved.”

Our Bylaws say this
“To provide for the maintenance, repair and replacement of the Common Elements and Limited Common Elements as required by the Master Deed, to make payments therefore, and to approve payment vouchers or to delegate such approval to the Managing Agent;”

Then the BOD added this into the Rules and Regulations
“COMMON ELEMENT LANDSCAPING/DECORATING The Board makes all decisions and directs all projects pertaining to common elements. Residents are encouraged to volunteer for Board-approved projects.”
--------------------------

Thanks in advance
AugustinD


Posts:0


02/18/2021 9:52 AM  
As long as the Board does not, without a membership vote, alter or further improve the common elements, then the rule seems lawful to me.

I grant that the rule makes it sound like the board is aiming to violate the Master Deed. But until it does so, perhaps all the Board needs is a reminder of what the Master Deed says.
JanineR
(Tennessee)

Posts:65


02/18/2021 10:15 AM  
The Board have been altering and/or improving the common areas without a vote.

We have very little funds for common area improvements because of previous loans.

I see in the annual budget for this year that our funds are going to be used on something many members couldn't care less about, but are interested in other ways to use those funds in the common areas.
JohnC46
(South Carolina)

Posts:10607


02/18/2021 10:30 AM  
Posted By AugustinD on 02/18/2021 9:52 AM
As long as the Board does not, without a membership vote, alter or further improve the common elements, then the rule seems lawful to me.

I grant that the rule makes it sound like the board is aiming to violate the Master Deed. But until it does so, perhaps all the Board needs is a reminder of what the Master Deed says.



I agree.
JanineR
(Tennessee)

Posts:65


02/18/2021 10:44 AM  
So can they do new projects on the common areas without a vote from the members?
JohnC46
(South Carolina)

Posts:10607


02/18/2021 10:48 AM  
Janine

New projects have to be defined. As an example, modifying something (even if extra cost) to prevent something could be acceptable and when look at could be considered an improvement.

Need specifics versus just throwing mud agaanst the wall to see how much sticks as many poster do.
CathyA3
(Ohio)

Posts:1612


02/18/2021 10:54 AM  
Usually when they talk about Alterations or Improvements, they're talking about capital improvements or changes. These are generally the sorts of things for which you have to set aside reserve funds each year to maintain. They change the nature of the community in some way.

This would include things like putting up a decorative brick wall at the community entrance or a pond with fountain - or removing such things if they're already there. Or if some part of the common areas were undeveloped and the board decided that this land should be developed with walking paths and the like. Or creating a play area. These things need a vote by the membership.

They're not talking about planting flowers each year, or even changing the kinds of plants you have since things like this will probably be paid for out of operating funds.

I agree with the others that the wording of the new rule sounds OK.
CathyA3
(Ohio)

Posts:1612


02/18/2021 10:55 AM  
Posted By JanineR on 02/18/2021 10:44 AM
So can they do new projects on the common areas without a vote from the members?




Depends on the nature of the project. See my previous post for examples.
JanineR
(Tennessee)

Posts:65


02/18/2021 11:25 AM  
Not throwing mud, just asking questions.
The Master Deed says "no alteration or further improvement of the Common Elements"... without a 67% vote from members.

So if a brick wall is planned this year that didn't exist before (which is one of the things) then shouldn't it be a vote?
I would probably vote for it.

If the parking lot is going to be repaved and repainted, shouldn't that be a vote.
I would probably vote against as we need the funds elsewhere.

Shouldn't these alternations and improvements of the common elements be put to a vote according to the wording of the Master Deed?
JohnC46
(South Carolina)

Posts:10607


02/18/2021 12:09 PM  
Posted By JanineR on 02/18/2021 11:25 AM
Not throwing mud, just asking questions.
The Master Deed says "no alteration or further improvement of the Common Elements"... without a 67% vote from members.

So if a brick wall is planned this year that didn't exist before (which is one of the things) then shouldn't it be a vote?
I would probably vote for it.

If the parking lot is going to be repaved and repainted, shouldn't that be a vote.
I would probably vote against as we need the funds elsewhere.

Shouldn't these alternations and improvements of the common elements be put to a vote according to the wording of the Master Deed?



Based on what you say.

1. If the brick wall is new it would be considered a Capital Improvement and need owner approval.

2. Parking lot repaving and repainting is not new thus not an improvement. They should be paid for out of the Reserves thus not needing owner approval.

Do you not know the differences?
JanineR
(Tennessee)

Posts:65


02/18/2021 12:26 PM  
Yes I do.
JanineR
(Tennessee)

Posts:65


02/18/2021 12:51 PM  
Another example is a very expensive railing was put around part of our common areas where non existed before.
But there was no member vote on that.
JohnC46
(South Carolina)

Posts:10607


02/18/2021 1:29 PM  
Jan

Per chance were these improvements planned on and funded via a Capital Improvements Budget?
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Forums > Homeowner Association > HOA Discussions > Limitations of Rules and Regulations



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