Question:
I have a two part question. I approached the president, and two additional board members along with a representative of the management company while they were walking the property about owner meetings. The president of the board told me they don not have owner’s meetings because of low turn out, and they decided to stop having them yearly; we haven’t had a meeting in over two years. Is this legal? My second question to the president was why aren’t owners consulted about upcoming projects, and provided with bids from potential contractors. The board is deciding on what color the exterior of our houses will be painted, and currently we have 5 exterior colors. The board president told me that they do not have to consult home owners about the decision because we do not have a say in the matter, and she said they do not have to tell us how they spend our money. Is this legal?
– Laura
Answer:
An HOA must hold annual membership meetings in accordance with its governing documents, specifically the bylaws. Your bylaws should tell you how often you should hold these meetings.
Generally, an HOA must also provide its members with financial reports. Homeowners may also examine these records upon request, depending on the CC&Rs and bylaws. If you live in a condominium created after Jan. 7, 1970, Section 46:8B-14(g) of the New Jersey Condominium Act states that the HOA is responsible for the following:
“The maintenance of accounting records, in accordance with generally accepted accounting principles, open to inspection at reasonable times by unit owners. Such records shall include
(i) A record of all receipts and expenditures.
(ii) An account for each unit setting forth any shares of common expenses or other charges due, the due dates thereof, the present balance due, and any interest in common surplus.”
As for potential bids and upcoming projects, unless your governing documents specifically say otherwise, the HOA board generally has the authority to make these decisions without consulting the homeowners.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
