COLUMN: Barbara Holland

Q. Within our clubhouse, there is a room with two cubicles that was once used by the developer as a sales office. A key is needed to enter. Our recently elected president made some renovations to the sales room and converted it into an office for him and other board members to use. He purchased a copy machine and filing cabinets and plans to install a phone line and fax machine in this designated office.

Our management company has provided these services for more than four years, and I question the need for a private office for board members to duplicate the services of our management company.

Is this an architectural change? If so, should a vote of the membership have been taken? Does the board have the authority to set up this office and make it off-limits to residents? Does the board have the authority to install a telephone which is not allocated in the budget?

A. Many clubhouses were originally used by the developer as sales offices. After development ends, many associations are left with small rooms that may not be very usable for the membership. Many associations have converted such rooms into association offices, even though they may be managed by professional management companies.

These offices can be very convenient for the management company and board and can be used for executive sessions or hearing rooms. Having a telephone and fax machine in these offices can be convenient as they can reduce traveling time between the board members and management company, allowing information to be exchanged in a timely manner. Obviously, if these rooms are used for association business, they would be restricted to board members only.

There is no problem with this conversion of space. There is probably a category in your budget for contingency expenses which would absorb these initial expenditures. For the coming year, any recurring expenses such as telephone lines or office supplies could be included in the new budget.

Since I have not read your association's governing documents, there is no definitive answer as to whether this conversion needed the approval of the membership. Generally speaking, the architectural guidelines require the board to maintain the physical integrity of the community consistent with the original design of the builder, unless the homeowners want a change.

In this case, the physical change was a slight modification. There was no real change in its use -- the room was originally an office and it is still an office. The only real difference is that the membership cannot use the space.

Q. Is it the property manager's responsibility to say something to the board if the association is over on its budget?

A. Yes. One of the responsibilities of the management company is fiscal management of association funds. The property manager should review the association's monthly and yearly income and expenditures and the projected income and expenditures. Appropriate adjustments should be made.

Questions for Barbara Holland may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759.

Barbara Holland, Certified Property Manager, is president and co-owner of H&L Realty and Management Co. She is a member of the Institute of Real Estate Management and is the author of two books on the subject. Holland is a past president of the Greater Las Vegas Association of Realtors.

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