An association may receive payments for the use, rental or operation of the common elements and this would include utilities that are not part of any unit. In addition, the Association may enter into contracts. Unless stated otherwise in the Declaration, these powers can be exercised without approval of the members. However, it is important to keep in mind that Board members owe a fiduciary duty to the association and must perform their duties in good faith in a manner they reasonably believe to be in the best interests of the association.
Eric J. Phillips, Esquire
Hladik, Onorato & Federman, LLP
298 Wissahickon Avenue
North Wales, PA 19454
Direct Dial: 267-662-9035
Fax: 215-855-9121
ephillips@hoflawgroup.com
www.hoflawgroup.com
The answer to this question depends on the rights of the board under applicable law and the powers granted to the board under their governing documents. Thus, I cannot provide a definitive answer with knowing the state in which their operate and review their documents and applicable law.
David Hellmuth
Hellmuth & Johnson, PLLC
8050 West 78th Street
Minneapolis, MN 55439
(952) 746-2107
dhellmuth@hjlawfirm.com
www.hjlawfirm.com
I am not sure I understand what is meant by “utility hookup”. The Board need not obtain owner approval for much of what it does as it is comprised of elected (and sometimes appointed) representatives who act in the best interests of all members. With that said, if the question is asking if the association (through the Board) can allow a business to use utilities provided and paid for by the association in exchange for a payment by the business, the answer is probably yes. But I am unsure why the association would want to enter into such an arrangement. That opens the door for any person or business to ask to use association-provided and paid utilities in exchange for payment therefor. It is not a recommended action.
Sara A. Austin
Austin Law Firm LLC
226 E. Market St.
York, PA 17403
717.846.2246 phone
717.846.2248 fax
saustin@austinlawllc.com
www.austinlawllc.com