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Spending Reserve Funds
QUESTION: Our neighborhood needs to have all of the streets repaired. The bids for the work are about $50,000. Does the board have the authority to vote on this capital expense? Some members insist the homeowners must vote on this large expenditure. They argue that some members may want to make other repairs first.

ANSWER: The board has the authority to make reserve spending decisions without a vote of the membership. Moreover, as provided for in Lamden v. La Jolla Shores (1999), boards can decide the timing, method and extent of repairs.

Adams Kessler PLC

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