Did condo board act appropriately?
Q:
Our condominium bylaws stipulate that the developer pays for our private road maintenance, plowing, sanding, until the last unit is sold. Two units were still unsold over the winter, so the developer is still responsible for the plowing and maintenance of the road.
Our board (we are self-managed) did not feel that the developer did a good enough job maintaining the road so the trustees decided to authorize the plowing and sanding themselves and assessed the 22 unit owners with approximately $14,000 in costs to pay for it – a rather large bill for the below average snowfall we had this season).
My concern is that there was no notice to the unit owners or a vote to see whether the majority wanted to relinquish this benefit provided to unit owners by the bylaws. There was just an assessment letter.
Also, if the board doesn't abide by the bylaws, then our association has no rules, as I see it, and any future board could do whatever it wants.
Does our board have the right to change stipulations (in this case, a large financial benefit) in our bylaws without some type of unit-owner participation and/or due process?
And do unit owners have the option to not pay the assessment, if the board did this in an "illegal" manner, or are we just bound to pay for the board's mistakes, if, in fact, they made one?
A:
First of all, you must pay the assessment.
Regarding the board’s decision to take over the plowing and maintenance of your road, yes, an owner or owners can take the board to court to make sure the board is acting in accordance with association bylaws.
But keep in mind, legal action is very expensive, and even if you prevail, you will not get your legal fees back. Often, an owner may think the board is acting in error, when in fact, the board is not.
Also, the board has the responsibility to ensure the road is maintained, and if it felt the developer was not doing an adequate job, then the board may have very well been acting properly to make sure the road was adequately maintained.
This situation cries out for communication, which should always precede legal action. Ask the board for an explanation.
This situation also cries out for a professional management company. Any condo association of 10 or more units really cannot afford not to hire a professional management company. Even associations smaller than 10 units would do well to consider hiring a professional management company.
Questions of adequate insurance, alone, are worth the cost of a professional management company. Also, a management company would know how much plowing should cost, if indeed, the association needs to pay for that service.
A management company might be able to push back on the developer, if the developer is indeed responsible for the road.