Throughout history “man” has continued to struggle with interpretation of the laws, rending various opinions on the definition and/or intent of how a word or phrase is used. We as a board struggle with interpretation as well. It isn’t always easy to make the “right” decision for the community and try to hold true to the Articles of Incorporation, Bylaws and DCCRs (Declaration of Covenants, Conditions, and Restrictions). We try to keep an open mind as people approach us sharing their opinions, concerns, and their own interpretations in regards to what the HOA board should or should not do. So let’s begin with a simple interpretation:
What is the “sole function” of an HOA?
After researching this question online, the answer varies greatly. One definition was “The purpose of a home owners association is to provide a common basis for preserving, maintaining and enhancing their homes and property” another definition was “The main function of an HOA is to govern the common areas of a neighborhood, such as the parks, pools, roads, etc.” These are two distinct and varying definitions. And these two definitions can also be interpreted many different ways.
So what is the sole function of our HOA? Per the Articles of Incorporation of Forest Bluff Residential Community Associations, Inc., “The Association is formed for the specific purpose of administering the common affairs of all of the owners of “the Property,” (know as Forest Bluff, Sections 1 – 5, a subdivision in Travis County, Texas). So what is the definition of “administering the common affairs of all the owners”?
With the above definitions, should the FBRCA consider using HOA funds to give a monetary donation to the water rate fight? Or is this an individual homeowner issue and funds should be raised by the community through individual donations?
The interpretation isn’t as simple as one might think. But let us take it a step further.
If the FBRCA considers a donation to fight the water rate increase, isn’t it the FBRCA’s responsibility to ensure that the money donated is being used for the purpose in which it is intended? Who is the money going to? Is the money being kept in a separate account and not being co-mingled with other funds? Will we receive a detailed monthly report which accounts for money collected and where the money is being spent?
As of today, our community is 43% paid current.
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