Legal question regarding Homeowners association - Chicagoland Sportbikes
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post #1 of 27 (permalink) Old 09-16-2005, 07:01 PM Thread Starter
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Legal question regarding Homeowners association

Our homeowners association is considering donating $149,000 of our capital improvement budget to the Katrina victims. The funds come out of our dues each month and are to be spent on things for our community such as swingsets, etc.. There is a lot of talk about this and most of the homeowners don't even know this might happen. A lot of votes are made by this board with only a few people present at meetings, so this is pretty scary. What kind of legal ramifications are there if they do this without consent of the homeowners??? I feel that if I want to contribute, which I have a few different ways already, than that is my right. I don't think they can just give away our money.
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post #2 of 27 (permalink) Old 09-16-2005, 07:21 PM
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Wow! That is crazy. I'd contact an attorney and consider slapping a TRO, until this is figured out.

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post #3 of 27 (permalink) Old 09-16-2005, 07:23 PM
 
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post #4 of 27 (permalink) Old 09-16-2005, 07:39 PM
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I'm a part of a homeowner's association and while I'm not a lawyer, what I would suggest you do is read the bylaws concerning how funds are handled. First there are rules regarding just how much the association can retain in funds in order to keep status as a non profit. Perhaps you're part of a large assocation but $149K sounds like a lot. Second the bylaws must specify how many people are required to vote to take collective action. You can always suggest a change to the bylaws if there is a portion of them you are not comfortable with. For example, for all expenditures over 25% of the total funds, more votes are required along with written notification to all residents two weeks prior. More immediately, get like minded folks to lobby the board members to reconsider. What if a similar tradegy were to befall your assocation? You, like so many of the folks affected by Katrina, would be unable to rebuild.

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post #5 of 27 (permalink) Old 09-16-2005, 07:42 PM
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illegal....those funds are for the association only and touching them is against the law..
they have to have huge balls to even offer something like that...its not thier money to touch, its the homeowners $ to be used at the boards discresion for the homeowners...

...plus my gf was with me saying "omg slow down, slow down" and I was thinking "Lose annoying squalk box in passenger seat, afford more mods and have less weight in the car and on the back of the bike"...so i dumped her and I'm single again as usual...HERE KITTY KITTY!!!
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post #6 of 27 (permalink) Old 09-16-2005, 10:04 PM
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Read bylaws and see if the board adopts "Roberts rules of Parlimentary procedure". This gives guidelines as to how many members need to be present for any kind of vote and a motiuon must have been made at a meeting with a second... They just cant do this on a whim.. That doesnt even go into the legal ramifications about the money issue.....

I call BS

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post #7 of 27 (permalink) Old 09-17-2005, 01:34 AM
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wow, that's an ugly can of potential worms. I can see the lawyers hopping all over this one for embezzlement and personal liability retributions

charitable donations are tax deductible. the paperwork would be a nightmare to issue to each assocation participant that they can claim XX% for a contribution.
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post #8 of 27 (permalink) Old 09-17-2005, 01:37 AM
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Gotta love HOAs . Pretty sure they can't do that, but I'd refer to your bylaws. That's why Shane and I decided that the next house we get will be no on HOAs.

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post #9 of 27 (permalink) Old 09-17-2005, 07:17 AM
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If you intend a major expendature, especially if not the the associations own good, you should put it up to a vote and need 2/3rd majority.

The board could be held personally responsible for misappropriation of funds

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post #10 of 27 (permalink) Old 09-17-2005, 08:21 AM
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This entirely depends on how the rules for the homeowners association were written. By law you have to be given a copy of them when you buy the associated property.

First, call your board members and tell them you strongly object ( if you do ).

Encourage others to do the same.... the board members are typically elected by the homeowners to legally act on your behalf.


If this action is not prohibited by your by-laws they could likely do it.


Depending on what services the HOA provides it could screw your community.

If they maintain the building outsides ( like siding, paint and roofs ) while you may not need it right now.... you are saving up for the day when you do need a new roof or wahtever.

If you spend that money.. then need a roof,you will have to borrow it against the association... the association will then extend a special assesment to each homeowner to pay it back.

That money comes right out of your pocket.

Divide 147,000 by the number of homes in the community to figure out your share... are you really ready to write a check from your checkbook for that amount ?

There you go.


Bitch up a storm .... it's innapropriate for them to make this decision for all the homeowners..... charity ( in this case ) nees to be an individual act.



( Former member of HOA Borad of Directors )

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post #11 of 27 (permalink) Old 09-17-2005, 08:25 AM
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Oh yeah.....


Then, next time you have a HOA board election, go and vote these
idiots off the board and get a handle on your community.

They affect your property value !!


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post #12 of 27 (permalink) Old 09-18-2005, 12:31 AM
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I seriously doubt that this is ok! As others have said, check your Declaration and Bylaws. If they are serious about this, I would contact an attorney IMMEDIATELY.

Holding a fund raiser or collecting donations would be great, but spending association money on this is a BIG no no!

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post #13 of 27 (permalink) Old 09-18-2005, 12:55 AM
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Here check it out, I cant even believe this is being discussed on our community BB system. these people are insane. http://www.wesmerecountryclub.com/fo...er=asc&start=0




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post #14 of 27 (permalink) Old 09-18-2005, 01:49 AM
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Un fucking believeable

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post #15 of 27 (permalink) Old 09-18-2005, 02:57 AM
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Wow, just read it all and am forwarding to my brother as he lives in there also.....

I plus 1'ed your post.. Great read WoW!! Nice post Tony..

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All you have to do is follow three simple rules. One, never under estimate your opponent (mentality). Expect the unexpected (could work out in your favor). Two, take it outside(or to a table). Never start anything inside the Bar unless it's absolutely necessary. And three, be nice.



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post #16 of 27 (permalink) Old 09-18-2005, 04:34 AM
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Incredible! I have served on the Board at my previous condo and current townhome association for a total of about 20 years and I cannot believe that the Board would entertain this notion! And you have someone suggesting that you collect the names of those opposing this????

I think the first thing I would do is post in that thread asking for the Board to suggest what specific provision of the Declaration authorizes the Board the autority to use association funds for this purpose. The thought that the Board would release the names of those opposing this is bordering on criminal.

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post #17 of 27 (permalink) Old 09-18-2005, 04:42 AM
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By the way, nice post Tony, and I believe you have suggested the proper approach.

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post #18 of 27 (permalink) Old 09-18-2005, 04:53 AM
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+1

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Life's Journey Is Not To Arrive At The Grave Safely In A Well Preserved Body, But Rather To Skid In Sideways, Totally Worn Out, Shouting "HOLY SHIT... What A Ride!"

All you have to do is follow three simple rules. One, never under estimate your opponent (mentality). Expect the unexpected (could work out in your favor). Two, take it outside(or to a table). Never start anything inside the Bar unless it's absolutely necessary. And three, be nice.



Turning Shit into Sugar!!
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post #19 of 27 (permalink) Old 09-19-2005, 08:37 AM
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Wow. Just wow, man.
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post #20 of 27 (permalink) Old 09-19-2005, 08:45 AM
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Quote:
Originally Posted by HDTony
Here check it out, I cant even believe this is being discussed on our community BB system. these people are insane. http://www.wesmerecountryclub.com/fo...er=asc&start=0

Wait a minute.....take away the money for the skatepark!!!!! That's fucked up!




I think if people want to donate personally they should but to take money out of the association coffers.....insane.


Tony, great post on there.

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post #21 of 27 (permalink) Old 09-19-2005, 08:08 PM
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What a horrible idea. If they don't listen to reason, you should get a lawyer involved...
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post #22 of 27 (permalink) Old 10-08-2005, 11:40 AM
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so what happened????
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post #23 of 27 (permalink) Old 10-08-2005, 04:37 PM
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Wow....how messed up is that? Nicely worded post Tony. I'm just glad Our home is not part of an Association. I would hope any money collected by the association thru assessments would go towards improving the community.

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post #24 of 27 (permalink) Old 10-08-2005, 05:30 PM
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Quote:
Originally Posted by Ernie
so what happened????
Honestly thats a really good question. I have not heard a thing about it since i made that post.




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post #25 of 27 (permalink) Old 10-10-2005, 10:39 AM
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Quote:
Originally Posted by HDTony
Honestly thats a really good question. I have not heard a thing about it since i made that post.
Please let us know when you find out. I'd like to know if they get away with it.
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post #26 of 27 (permalink) Old 10-10-2005, 10:53 AM
 
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Quote:
Originally Posted by Thunderstruck
illegal....those funds are for the association only and touching them is against the law..
they have to have huge balls to even offer something like that...its not thier money to touch, its the homeowners $ to be used at the boards discresion for the homeowners...
I'm sure there are ways around it though.
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post #27 of 27 (permalink) Old 10-10-2005, 11:01 AM
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Quote:
Originally Posted by BIGGY
I'm sure there are ways around it though.
If their are the Declaration and Bylaws need to be fixed. I'm pretty sure the Illinois Condominum Act would cover this.

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