Board vs HOA Manager Decision on Assessment Increase

Question:

I have a question pertaining to boardmember authority pertaining to Financial related decisions in my HOA.
I am an elected boardmember along with 2 others in my community. I want the decision of how much monthly dues increase to be a boardmember decision and not a manager decision. Is the covered under the PA Planned Community Act which oversees general rules of HOAs in the state of Pennsylvania. I cannot find wording in our Bylaws pertaining to this topic.

thank you

– Tom

 

Answer:

Hi Tom,

According to the Pennsylvania Uniform Planned Community Act Section 5302(a)(2), the association may amend the budget and collect assessments, as stated below:

“(2)  Adopt and amend budgets for revenues, expenditures and reserves and collect assessments for common expenses from unit owners.”

Under Section 5303(a), the board may act on behalf of the association.

In addition, HOA managers only exist to assist the board. The board retains the right to make final decisions on association matters, including the increase of monthly dues. Here is a resource you may find helpful: https://www.cedarmanagementgroup.com/hoa-board-vs-hoa-management/

You may review the contract signed with the HOA management company to see whether there are any stipulations regarding this.

Finally, depending on the governing documents, the board may need to follow certain rules on increasing assessments. For further guidance, kindly consult a lawyer.

 

Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.

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