Condo Adviser: Condo board has authority to pursue major capital projects

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From a best practice standpoint, it is common for condominium boards to provide information to the unit owners about the scope, design and timelines of projects.

Q: I am a unit owner in a high-rise condominium. Our board of directors recently approved several major projects to the tune of millions of dollars without any detailed presentation to the owners. The board did not give the unit owners a chance to provide input or ask questions. The project is being paid for out of the reserve fund.

From a best-practice standpoint, it is common for condominium boards to provide information to the unit owners about major capital projects, including the scope, design and timelines. Soliciting unit owner opinions is not so common because of the volume of different opinions that may be received, but allowing unit owners to ask questions about the projects is an appropriate step.

A: A bylaws restriction limiting a condominium budget increase to no more than 7% unless unit owners approve it is unenforceable because it’s not consistent with the Condominium Act and is therefore void, according to the provisions of that act. Section 18 of the Condominium Act allows a condominium board to increase the sum of regular and special assessments over the previous year by 15% without unit owner approval or rejection rights.

 

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