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Real Estate News and Advice |
August 29, 2008 |
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Ask the HOA Expert
by Richard Thompson
Question: One of our board members is pursuing a personal agenda. He performs unauthorized maintenance and pesters unit owners about minor rule infractions. What can we do? Answer: Communicate with him directly, clearly and specifically. Explain that performing unauthorized maintenance undermines the budget and the system for addressing maintenance. Provide him details about specific complaints by owners. Explain that his independent actions undermine board authority. Question: Recently, our HOA members approved substantial amendments to the governing documents which include:
Can the HOA legitimately claim these rights? Answer: The HOA cannot vote itself ownership of property belonging to private owners without their consent. In this case, all lot owners would need to agree to relinquish ownership to the HOA. A majority vote can’t force it. Same answer for the landscape easement. The HOA has no authority to commandeer private property by member vote. The third item is different. As long as the HOA has the right to dictate architectural design standards, it has the right to inspect for compliance. Question: I've heard that special assessments have to be kept in an escrow account and cannot be used until all owners have paid. Is this true? Answer: It depends. Special assessments should be kept in a designated account if they are to be used for a specific purpose, like repairing roofs. If the special assessment is simply to build reserves, the funds can be put in the general reserve fund. There is no requirement that an entire special assessment has to be collected before it’s spent however, if all the money is needed to pay for a specific project, the board needs to be careful about starting a project without the money to pay for it. For more Ask the HOA Expert, see Regenesis.net. Published: March 19, 2008 Use of this article without permission is a violation of federal copyright laws.
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