Question: We are a 16 unit community. We have decided to renovate our 27 year old irrigation system and replace the existing landscape at a cost of $32,000. We are undecided as to whether or not to seek a loan for this project, make a special assessment or both. Which way should we go?

Answer: Loans usually make sense for major renovation projects that cost each owner $10,000 or more and that have a recognizable benefit to future owners. While $2,000 each is not insignificant, it is manageable. Also, lenders are usually interested in loans of at least $100,000 or more and the application work and cost to package a loan is fairly significant. I suggest you do a special assessment for this one and if you haven't performed a reserve study to plan for other periodic maintenance and replacements, invest in one now as well.

Question: Recently the President of the Board requested a written legal opinion regarding an Architectural Review question without consulting the Board. Is this allowable?

Answer: The President has the authority to make decisions on behalf of the association unless it involves an extraordinary issue and cost which clearly require Board or owner approval. If legal costs are budgeted for (and they should be) and the particular cost relatively small, the President has the right to do what was done.

For more on this subject, see www.regenesis.net.

Published: September 27, 2000

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Richard Thompson owns Regenesis, a management consulting company that specializes in condominium and homeowner associations. He is a nationally recognized expert on HOA management issues. Regenesis publishes The Regenesis Report, a monthly newsletter for HOA boards, developers and managers. To subscribe, go to Regenesis.net. He can be contacted by email at .