May A Board Decide To Add A Capital Improvement Without Seeking Owner Approval?
I love it when I get really good meaty questions from readers that, when answered, can help others. This is a good one that works: FROM A READER: “So here is the question. Can an association randomly just add something to reserves and then build it. Kinda the “If you build it they will come” mindset. I looked at Davis Stirling and our CC&Rs and found nothing really concrete either way. I have read two articles on this subject by two different attorneys and one said that so long as the new improvement fell within budget it was OK. (Assuming that reserve spending was a budget item). The other article noted that “The discretionary addition of new facilities which were not previously part of the development’s original construction, which exceeds 5% of the budget, requires membership approval.” This person is asking for my thoughts on the subject. Here goes … Some documents do require a Board to seek membership approval for any capital improvement that exceeds 5% of the budgeted gross ope
