HOA Board of Directors, what can they approve without member vote? (homes, clubhouse)

[NC coast]

Thank you for all your thoughtful responses CA.
It seems to me that Chapter 47F contradicts our community by-laws (which were adopted from the developer and unchanged when the HOA took over).
We are also self managed, which makes it more difficult.
The reasons they gave for the additional pier is truly nonsense. The bottom line is they have personal agendas and unjustified views. One reason they gave was to handle the overflow - which is ridiculous. The current boat area is busy maybe 6 times a year.
The president claims that it's to increase property values (he has no real estate background by the way).
I have been in the industry for 20 years, and he's dead wrong.
In this economy, the one thing that would attract more buyers would be reduced dues, which would be possible if we nix this project. This is just not the time for unnecessary spending, maybe in a few years we can justify adding amenities, but it just doesn't make sense now.
It's just very frustrating to know that my money is being managed by people too ignorant to see past their inflated egos.
Thank you again for your input.

[topchief1]

Good intentions are often trumped by power rushes and inflated egos. Just look at our politicians for a good example of that.

[NC coast]

If anyone has any input or suggestions on how to approach this from a legal standpoint, please advise.

[CarolinaAppraiser]

Originally Posted by NC coast

Thank you for all your thoughtful responses CA.
It seems to me that Chapter 47F contradicts our community by-laws (which were adopted from the developer and unchanged when the HOA took over).
We are also self managed, which makes it more difficult.
The reasons they gave for the additional pier is truly nonsense. The bottom line is they have personal agendas and unjustified views. One reason they gave was to handle the overflow - which is ridiculous. The current boat area is busy maybe 6 times a year.
The president claims that it's to increase property values (he has no real estate background by the way).
I have been in the industry for 20 years, and he's dead wrong.
In this economy, the one thing that would attract more buyers would be reduced dues, which would be possible if we nix this project. This is just not the time for unnecessary spending, maybe in a few years we can justify adding amenities, but it just doesn't make sense now.
It's just very frustrating to know that my money is being managed by people too ignorant to see past their inflated egos.
Thank you again for your input.

Wow. I'm shocked that your HOA is self managed. That is probably part of the problem. I serve on our board but even as a real estate appraiser I am dependant on our property manager for advice and insight on how to help manage our HOA. Our property manager also acts as a buffer to resist the exact problems you've mentioned. It's no surprise that you have some board members that may be acting in a manner that benefits them personally. I'm afraid I don't have a solution to your current problem with the new dock/pier but you might want to make some noise about getting a property manager and I think that would be a perfectly reasonable request. At the very least you need someone outside the HOA to make sure the finances are being collected and distributed properly.

And I agree with your assessment on the effect on property values. If your community didn't have a dock or pier and you added one then that would benefit property values. However if you are simply expanding an existing amenity it is unlikely that it will have any measurable effect unless each home will now have it's own private boat slip which I assume is not the case in your situation.

[NC coast]

No boat slips in the new project, although THAT would certainly be a benefit to the community as we currently don't have any. Maybe a homeowner could have suggested it had the board communicated and asked for input from the HOA instead of taking it upon themselves to make all decisions and keep all details private.

This is how our by-laws read regarding the adopting of budgets:

The BOD shall adopt a budget (which shall include any proposed capital expenditures) for any fiscal year as set forth in the Declaration and shall establish the amount of the annual assessment for every Member subject thereto. The BOD shall send written notice of each annual budget and assessment amount to every Member at least fourteen days in advance of adopting the same. In adopting a budget, the OD shall provide for a reserve fund including a reserve for the deductible on physical damage insurance policies.

That's all on the budget. Do you find it strange that it doesn't indicate anything about the HOA having an opportunity to review and accept or reject the budget as I believe it spells out in Chapter 47F-3-103(c)? Our community was established after 1999, just FYI.

We never had a chance to give any input at all nor were we given any specifics on anything until after it was already accepted and contracted. The board is claiming they didn't have to allow the HOA to give input or vote, legally. Which, does seem to be the case according to our community by-laws.
One of the board members is a lawyer, so it's a bit intimidating for the HOA to question their actions...

Edited to add: One more tidbit of info, the board got only ONE bid for this new improvement, and that's who they contracted with.

[Teddiegough]

Don't look in your By-Laws first. Look in your CC&Rs. The CC&Rs give authority to the Board and are also the authority for the other declarations including the ByLaws. Furthermore, if there is a disagreement between the CC&Rs and any other declaration, the CC&Rs take precedent.

So, start with a good reading of your CC&Rs---the best place to start.

[jbonsign]

can a hoa board hire a management company without the approval of the homeowners

[carolinadawg2]

Originally Posted by jbonsign

can a hoa board hire a management company without the approval of the homeowners

What do the covenants and other hoa documents say?

[cully]

Some CC&Rs will say something like approval from residents needed for any expense over $10,000 or $15,000 or whatever.

That said, when those kind of characters get something in their minds, they will do it secretly if they want to. Not that all do this...just the kind of people you seem to describe.

It is a shame when you believe you are part of a good thing, a lovely location and find out there are those just into ego and greed while being ignorant. Incredible they did not have their expenses planned to know their costs will be double.

How will your community finances be after this is complete? Perhaps you can keep an eye on something in your documents that says their duty is to maintain....in whatever manner...carefully, etc.

Of course, if they get in financial trouble, they'll just have a special assessment or raise the fees.

Sorry about this.

[Boss]

The current NCGS 47f and 47c allows the HOA or COA board to make contracts. No more then a notice to owners is given in most cases.

Earlier in this tread it is mentioned that self managed HOA's are bad. Well in my experience those that can not be run by the residents are doomed to fail as more and more expense gets taken up by the management Co.. Leading to the failure of the community and the loss of value of each home owner.