Springs CCR: Member Approval of Special Assessments

QUESTION: If the Board of Directors determines that a special assessment is needed in order to fund the construction, reconstruction, repair, or replacement of a common area capital improvement, what is the process and member approval requirements?


ANSWER: The member meeting announcement, meeting quorum, and member approval requirements are specified in CCR Article XXXV, Covenants for Maintenance Assessments.   Those requirements are also exactly the same for member approval of a proposal by the Board of Directors to increase the following year’s annual assessment (HOA dues) that exceed 10% of the current year’s assessment amount.

 

The requirements include:

  •      >A written notice of a member meeting called for the sole purpose of obtaining member approval of a special assessment or annual assessment increase exceeding 10% of the current year’s assessment amount must be provided to all 86 homeowners at least thirty (30) days in advance of the meeting, and state the purpose of the meeting.
  •      >The quorum for the meeting is at least 60% of homeowners, or a minimum of 52 homeowners attending in person or by proxy.
  •      >At least 2/3 (67%) of the members attending the meeting must approve the special assessment or annual assessment increase.   If the minimum 52 homeowners attend the meeting, at least 35 must approval the increase.  If 70 homeowners attend, at least 47 must approve the increase, and so on.
  •      >If a quorum is not achieved at the first meeting, another meeting may be called.  The written notice of the meeting and its purpose must again be provided to all homeowners at least 30 days in advance of the meeting.
  •      >The second meeting’s quorum is ½ of the first meeting’s, or a minimum of 26 homeowners attending in person or by proxy.  The 2/3 (67%) approval level remains in effect:  if the minimum 26 homeowners attend, at least 18 must approve the increase.  However, if the second meeting is not held within 60 days following the first meeting, then the original quorum requirements apply.

 

 

These “Test Your Knowledge” CCR messages intend to remind residents of the Covenants, Conditions, and Restrictions (CCR’s) that apply to all Springs residents solely by our election to live in this community. The purpose of the CCR’s is to maintain specific standards for the good of us all, as articulated in their definition:


“THE SPRINGS AT STONE OAK is encumbered by these Restrictive Covenants for the following reasons: to seek to achieve the best and highest use and most appropriate development of the property; to protect lot owners against improper use of surrounding lots; to preserve so far as practical the natural beauty of the property; to guard against the erection of poorly designed or proportioned structures of improper or unsuitable materials; to encourage and secure the erection of attractive improvements on each lot with appropriate locations; and to secure and maintain proper setbacks from streets and adequate free space.”

If you are a Springs resident who has misplaced your copy of the CCR’s, or are a new resident who wasn’t provided a copy by the previous owners or your realtor, you can view (and download in Adobe Reader [.pdf] format) the complete Springs CCR’s and By-Laws at the Consolidated Bylaws and CCRs section of this website, located in the Pages & Links tab.