Hopefully there will be much discussion about this aspect of Due Dilligence, but the main point of informaiton I want to get out here is the limitation on the Board when it comes to special assessments. Paragraph 16H (page 27) of the CC&R's reads:
''In any fiscal year, the Board may not, without the vote or written assent of a majority of the voting power of the Association ..., levy special assesments to defray the cost of any action or undertaking on behalf of the Association which either by itself or in the aggregate exceeds five percent (5%) of the budgeted gross expenses of the Association for that fiscal year.''
If gross expenses excludes transfers to reserves, then the monthly number is $81,900 times twelve equals $982,800 annually. So, without a vote of the homeowners, the Board can only assess up to $49,100 for 2002 (that is probably less than the total expenses for due dilligence studies in 2001 and certainly is not enough to rebuild the gym and pay the cost of reconstructing the units involved in the identified mold problem.
I hope other people will join the discussion of this issue. From a practical standpoint, getting 51% of the unit owners to cast a vote, much less in favor of a big assessment is unlikely, but the fact of the matter is that the money has been spent so I would vote in favor of an assessment to cover expenses to date, but I hope the Board will give more consideration to our willingness to pay for new committments going forward.
This is by no means an exhaustive discussion of the topic, I hope other people will add their thoughts on how an assessment should be levied (one time, installments, etc.).
P.S. This information also means that the increased assessment in 2001 (11%) was technically not in conformity with the CC&R's, but that was to cover the exceptional cost of higher energy prices and came on the heals of no increase in HOA fees for a couple of years.
''In any fiscal year, the Board may not, without the vote or written assent of a majority of the voting power of the Association ..., levy special assesments to defray the cost of any action or undertaking on behalf of the Association which either by itself or in the aggregate exceeds five percent (5%) of the budgeted gross expenses of the Association for that fiscal year.''
If gross expenses excludes transfers to reserves, then the monthly number is $81,900 times twelve equals $982,800 annually. So, without a vote of the homeowners, the Board can only assess up to $49,100 for 2002 (that is probably less than the total expenses for due dilligence studies in 2001 and certainly is not enough to rebuild the gym and pay the cost of reconstructing the units involved in the identified mold problem.
I hope other people will join the discussion of this issue. From a practical standpoint, getting 51% of the unit owners to cast a vote, much less in favor of a big assessment is unlikely, but the fact of the matter is that the money has been spent so I would vote in favor of an assessment to cover expenses to date, but I hope the Board will give more consideration to our willingness to pay for new committments going forward.
This is by no means an exhaustive discussion of the topic, I hope other people will add their thoughts on how an assessment should be levied (one time, installments, etc.).
P.S. This information also means that the increased assessment in 2001 (11%) was technically not in conformity with the CC&R's, but that was to cover the exceptional cost of higher energy prices and came on the heals of no increase in HOA fees for a couple of years.
