QUESTION: Our directors did not seek member approval nor advise the membership when they overspent the approved budget in one area of expense by nearly 1000%. Wouldn't they be required to seek membership consent for such a dramatic increase in actual pending?

ANSWER: Overspending requires membership approval only if the board imposes a nonemergency special assessment greater than 5% of the budget. Boards may be faced with unexpected increases in insurance premiums, utility rates, legal fees, etc. which leaves them no choice but to spend more than was budgeted. When that occurs, boards may impose an emergency special assessment, borrow from reserves, or raise the dues for next year--none of which require membership approval.