Question:
If 61% of the homeowners in a MD state HOA sign a petition to hire an attorney to fight an adjacent land zoning change request, is the BOD obligated to honor the desires of homeowners when there is more than ample funding in the Homeowners’ Equity fund? (All of the necessary HOA monetary funds are more than fully- funded and the Homeowners’ Equity fund is comprised of excess money left over from “prior years” operating budgets.)
– Chris
Answer:
Hi Chris,
Typically, the HOA board of directors has discretion over what choice the community will make moving forward. However, the directors do have a fiduciary responsibility to act in the community’s best interest. While they may not be legally obligated to follow the petition, they may need to strongly consider the homeowners’ desires or come up with an alternative solution. It’s best to consult industry experts such as HOA management companies and attorneys before proceeding.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
