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If you're not the sole owner of the entire property, whether it's an apartment building or a rental property, it's necessary to inform the HOA or housing cooperative about repairs and potential renovations. The same applies if the HOA or housing cooperative decides to renovate the common areas in the building that truly require it and involve construction work. Such events always require voting at a convened meeting.

For the reconstruction and modernization of suspended elements and the facade, a majority vote of 3/4 in favor of the renovation is sufficient. This is because it often happened that one of the owners disagreed, halting the entire repair process. The law addresses this possible deadlock and resolves it in a way that avoids complicating construction work. However, if there are internal changes to the layout of the building and units, the vote of all involved parties is required.

HOA (Homeowners' Association)

• Members of the HOA are the individual owners of residential units.
• Membership is de facto involuntary and is acquired by the owner during the transfer of ownership of the unit.
• Voting is a right of the owner, not an obligation.
• If the property is owned by a married couple, they have one vote and must vote in unison.
• To approve a specific matter, a majority of votes is required.

Housing cooperative

• Each member of the housing cooperative has one vote, even if you own multiple units, the number of votes does not increase.
• In many cases, the housing cooperative owns all the residential units in the building, making voting on common matters easier.

The governing documents that HOAs and housing cooperatives follow are their statutes. These clearly outline what these entities can and cannot do, and they are binding. If renovation is necessary due to an inadequate facade or balcony maintenance, a majority of 3/4 votes is required. It's important that at least 50% of eligible voters participate in the vote. Proxy votes are also counted if a person cannot attend the meeting, for example, if they live abroad and have a tenant in their apartment.

In a housing cooperative, each member has one vote, while in an HOA, the number of votes is based on the proportion of units owned in the property. Therefore, the owner of a proportionally larger unit has a higher percentage of the vote.

HOA

The reconstruction of the building must be approved by a qualified majority of the owners of all units in the building. In most cases, voting takes place at a general meeting, where the HOA presents renovation proposals and possibly cost estimates from different companies. The key factor is the extent of the repairs and changes involved. It's essential to find out which fundamental positions are contained in the HOA's statutes. If the renovation is approved by a qualified majority, the next step is to consider who will bear the cost of the renovation and how.

Housing cooperative

In a housing cooperative, the situation is usually easier. The cooperative typically owns all residential units. During the announced meeting, the renovation is discussed and then voted upon. If the proposal is approved by at least half of all cooperative members, it is considered accepted. Owners who disagree with the approved renovation can only turn to the court with a lawsuit; there are not many other options.

If the HOA has sufficient funds in the so-called repair fund, it can finance the renovation from there. This fund consists of money that is deposited monthly by all owners for unexpected repairs or specifically for renovations. It covers all expenses related to the lighting of common areas, elevator maintenance, insurance for the entire building, and more.

If there are not enough funds in the repair fund for the renovation, it is possible to apply for a loan, which is often secured by collateral. This solution is very problematic and requires agreement from all owners.

Check out our account for inspiration.

All the information provided is based on general regulations. If your HOA or cooperative has approved different binding statutes than usual, the statutes approved by your HOA or cooperative naturally apply.