- Community Associations, Board Member 101, Finances, Seasonal and Holidays
- Wisconsin, Indiana, Illinois, Florida
In Association Answers, KSN attorney Matthew Moodhe addresses frequently asked questions from community association board members and property managers. If you have legal concerns, please contact Matt or any of the attorneys at our law firm by calling 855-537-0500 or visiting www.ksnlaw.com/contact.
Can a community association adopt sustainability or “green” practices, and what authority does the board need to do so?
Condominium, homeowner (HOA), and townhome community associations often adopt sustainability initiatives, but the board’s authority to do so typically depends on the association’s governing documents along with applicable federal, state, and local laws. Common examples include recycling, energy-efficient lighting, water-conservation measures, EV charging stations, or landscaping changes.
It’s best to work with the association’s attorney to determine if implementing these “going green” practices fall within the board’s discretion or require owner approval. In some cases, sustainability initiatives may be treated as operational or maintenance decisions that the board can approve. Larger projects or changes affecting common elements, costs, or unit owner rights may require a vote of the membership or an amendment to the governing documents.
Boards should also evaluate budgetary impacts, reserve implications, and impact to insurance coverage. Taking a proactive, well-documented approach helps ensure sustainability efforts are legally sound, financially responsible, and aligned with the association’s goals.
For some unknown reason, our condominium association’s fiscal year currently begins on March 1st. How can the current board change it to reflect a calendar year?
Boards often consider changing the association’s fiscal year to better align budgeting, reserve planning, audits, tax filings, and other financial responsibilities with a standard calendar-year cycle.
It’s not uncommon for an association’s declaration and/or by-laws to specifically designate the association’s fiscal year. Current or more up-to-date governing documents will often give the board the discretion to change the association’s fiscal year by a simple majority vote of the board of directors.
To protect any decision-making that leads to a change, a board will typically ask the association’s attorney to review the governing documents for a clear legal opinion as to what authority the board may have and what is required to change the fiscal year. A change may be done through an amendment to the declaration and/or by-laws along with the possibility of a percentage of ownership approval, depending upon the precise language of the association’s governing documents.
Along with legal issues, a board considering changing the existing fiscal year should also discuss the financial, budgetary, and cash flow ramifications with the association’s accountant and/or management’s financial department.
Ultimately, a thoughtful review of both the association’s governing authority and financial impacts helps ensure that any change to the fiscal year is legally compliant, financially sound, and in the best interests of the association.
Legal Resource
Do not hesitate to contact our law firm if your condominium, homeowner (HOA), or townhome community association has questions regarding board member responsibilities, owner disputes, or other legal concerns.
Please call 855-537-0500 or visit www.ksnlaw.com.
Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.
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