Q: Can an owner fund common area capital improvements for a small, condo, HOA?
I own a condo in an old 3 unit building, in San Francisco, that hasn’t had much done in the common areas since it was converted in the 70s. A lot of our common area is under utilized and/or needs repair and we are also short on parking. I know the other owners won't be able to split large investments, like expanding our parking area, so I was wondering if I can approach them with a plan where I fund the project in exchange for priority spot, larger storage area, etc and then we update our CCRs to reflect the changes. Seems like it could be a win for all, given now we just have 1 parking spot we rotate use of each month, but I'm uncertain of the legality of doing something this way and/or potential challenges with updating the HOA documents.
A:
Under California law, a condo owner in an HOA can propose funding common area improvements, but this requires careful navigation of both legal and HOA governance aspects. Firstly, any significant changes to the common areas, especially those involving capital improvements, typically require approval from the HOA board or a vote among the members, depending on the HOA's governing documents.
When proposing your plan to fund the improvements in exchange for specific benefits like a priority parking spot or larger storage area, you should also consider the implications for other owners. Your plan needs to be fair and not disproportionately benefit you at the expense of others. Additionally, such arrangements can potentially affect the property values and rights of other members, which must be carefully evaluated.
Amending the CCRs (Covenants, Conditions, and Restrictions) to reflect these changes is indeed a crucial step. This often requires a majority vote from the HOA members. You should review your HOA's specific amendment procedures and voting thresholds.
Consulting with a real estate attorney familiar with HOA law is advisable to navigate these complex legal waters and ensure compliance with both state law and your specific HOA's rules. This professional can also assist in drafting and reviewing the proposed amendments to the CCRs to ensure they are legally sound and protect the interests of all parties involved.
Remember, transparency and open communication with the other members of the HOA will be key in moving forward with your proposal.
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