Background
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- The CCREs grant the Board the sole unlimited authority to commitment funds on behalf of the Association with a majority affirmative vote with the exception of the following two items:
- A two thirds (2/3) affirmative vote is required to levy special assessments or to increase annual dues more than 25%;
- A three-fourths (3/4) affirmative vote of Class A members is required to change the recorded CCREs.
- Following transition of the Board from developer managed to self-managed, the Board developed and implemented the Authority to Commit Funds Policy to further delineate the Board’s commitment authority in order to…
- Provide consistency in decision making related to Association spending to subsequent Boards.
- Provide accountability and transparency for the Board’s spending decisions within the community.
- Establish a structure, framework and hierarchy for commitment of funds.
- Separate the commitment authority between Operations, Major Repair and Replacement (MRR), Major Improvements (MI) and Environmental Easements and Permits Reserve (EE&P). Protect MRR and MI funds by placing stricter controls on use of MRR funds and discretionary MI spending.
- Require a community vote for authorization of high dollar MI spending. (see QHRRP 9000-420 (MI Reserves Funding).
- Delegate authority to the Property Manager to manage the operating budget and commit funds if the budget is achieved.
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