Interpretation
Hi Dennis. Have an interpretation question. The CCR’s state the following:
Section6.2. PurposeoftheAssessments. The assessments levied by the Association shall be used exclusively for the upkeep, maintenance, and improvement of the Common Area and such portions of the Lots, and such portions of the Improvements located thereon, as the Association is obligated to maintain under Sections 9.1 and 9.2 of this Declaration,
I am of the opinion that association dues should not be utilized for Social activities. I rather see funds used to improve the grounds and structures etc. Homeowners don’t benefit from a Easter Egg hunt when they go to sell their property. The Board of Directors claims this particular verbiage in the CCR’s permits them to utilize funds for social activities: and for promoting the recreation, health, safety and welfare of the Owners and residents of Lots within the Property. What say you?
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Kathy
It is very difficult for me to provide your direct advice based on the very limited information you provided. Yes, based on the specific you cited cost for recreation activities would not be allowed, but there may be other provision within the CC&R’s that state otherwise. The CC&Rs have to be read in their entirety and you cannot simply look at one provision and come to a safe conclusion. If you want to send me your CC&Rs I’ll look thru the entire document and provide you better guidance.
Dennis
Hi Dennis…..I am not able to attach the CCR’s. Is there another way to send them to you?
Kathy,
If you have them in electronic format just attach them to an e-mail to the address above. AZHOAtruth@gmail.com.
Dennis
Thanks…I sent them.
Kathy,
While you are correct the primary purpose of any assessment made by the association must be for the maintenance, operation and upgrade of the common property, including the operating and administrative cost of the association itself. Your CC&R’s do have another clause that was not quoted earlier. Specifically, “and for promoting the recreation, health, safety and welfare of the Owners and residents of Lots within the Property.” This is a general clause, but it does have wiggle room to accommodate recreational activities like parties and dinners as long as they are open and available to all the members. This was not an interpretation of the CC&Rs but rather a direct quote from the CC&Rs. So, to your question, yes, your association does have the ability to use common expenses to promote recreation.
Social activities are all part of a community that adds to the general welfare and peace in any community. While it should be managed based on participation carefully, and not used to the benefit of some or a small portion of the community at the expense of everyone. Not all people like to do some types of social activity so the association if they are going to do this should try to balance the activities so that everyone gets some activities that they can participate in and not feel that they are subsidizing the enjoyment of others.
Dennis