February  2010
  reprinted with permission, Richard Thompson, www.regensis.net

Ask the HOA Expert
by Richard Thompson
For more innovative homeowner association management strategies, see Regenesis.net.

Question: We have a volunteer fire department in our community. Our HOA members voted at the annual meeting to donate to it by way of special assessment. Those members that don't want to pay the assessment are subject to collection and lien on their property. Can donations be forced by majority vote of members in this way?

Answer: Forced donations are not permitted under any governing documents or state statutes. If individual members want to contribute to a particular cause outside the HOA's responsibility, that's up to them. The HOA has no authority to force participation. However, if the volunteer fire department protects the homeowner association property, the answer is different. Volunteer fire departments cost money to run. If their budget is inadequate and contributions must be raised, the HOA should include the cost in the annual budget. Fire protection is not a luxury and most volunteer fire departments are a bargain because of the "volunteer" aspect. Just because the cost is characterized as a donation doesn't change the result of a necessary service.

Question: Our governing documents state that the board may levy an assessment if the reserves are inadequate. The governing documents also state that making additions, alterations or improvements costing over $10,000 shall be approved by a majority of the owners. Is a roof replacement considered an improvement?

Answer: No, the "additions, alterations or improvements" language pertains only to things that weren't there before. While the board has the authority and duty to reserve for common element repair and replacements, discretionary spending exceeding the indicated dollar amount should be approved by the members.

For more innovative homeowners association management strategies, see Renegesis.net.

Published: February 3, 2010

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