Question: Recently, my condominium association installed a bike rack and bench on the property. Following the installation, I questioned the board whether these changes should have been approved by 75% of all unit owners. In response, the board stated that our documents allow the board to spend up to 5% of the association’s budget on… Continue Reading
There are two weeks left in the 2017 Legislative Session—assuming it ends on time. Of the many different community association bills that were filed at the beginning of session, the following four (4) sets of bills are the ones that appear to be most likely to pass. Condominium Bills by Sen. Garcia and Rep. Diaz… Continue Reading
Question: I am a new director on my condominium association board. At a recent board meeting, there was a discussion about switching to “pooled” reserves. What are pooled reserves and what does the association have to do to implement pooled reserves? R.G. Answer: Cash flow funding of condominium reserves, often referred to as the “pooling”… Continue Reading
Question: My condominium association holds an annual holiday party at a nearby restaurant. The association pays for everything, including the banquet hall, food and refreshments, by using common funds. Is this a proper common expense? J.A. Answer: Maybe. Your condominium association’s governing documents likely include a definition of “common expenses.” If this definition specifically includes… Continue Reading
We are committed to sharing our legal knowledge to help others. We do so by offering State-approved educational resources in various forms, including more than two dozen courses, conferences, panel discussions, personal meetings, and webinars that you can conveniently attend from your office or home. With this many available options, it is easy for your… Continue Reading
Question: I live in a homeowners’ association. The board of directors has historically held a budget workshop with only the chief financial officer of the management company and two of the five directors present. The association is governed by a five member board, so that board argues that because a quorum is not present, they… Continue Reading
Question: Can a realtor request a copy of the association HOA budget? One of the properties in our Association went through all the foreclosure proceedings and the bank is now the owner. A realtor who is representing the bank has asked for a copy of the current association budget. When I asked why, she said… Continue Reading
Question: Can the board of a homeowners’ association move monies from one reserve account to another, or for operating purposes, without membership approval? D.D. (via e-mail) Answer: Section 720.303(6)(h) of the Florida Homeowners’ Association Act states that “statutory” reserve funds (this is the industry accepted legal “slang” term and not a term used in the… Continue Reading
Question: We own a unit in a condominium association and this year our assessments increased significantly. I was told that the Condominium Act did not allow boards to increase assessments more than ten percent per year without an owner vote. Is this correct? J.C. (via e-mail) Answer: No. Section 718.112(2)(e)2.a., Florida Statutes, provides that if… Continue Reading
Question: Our homeowners’ association has not adopted a budget for 2014. Our budget year is the calendar year and the budget was supposed to be in place by January 1, 2014. Our manager has stated that the budget is the same as last year and the assessments just carry over. Is the association allowed to… Continue Reading
Question: Our homeowners’ association recently acquired a vacant lot through foreclosure. There is no mortgage on it, and we will ultimately sell it. We have a disagreement between our treasurer and association manager as to whether the association needs to pay assessments on a lot that it owns. What do you think? H.S. (via e-mail)… Continue Reading
Question: Recently, our condominium association considered a special assessment. It was approved by the owners for a specific purpose. The cost turned out to be quite a bit less than quoted. What options are there for use of the extra money? Does the overage have to be returned to the owners? Can it be put… Continue Reading
Question: Our condominium association sends the owners monthly budget reports, including year-to-date expenditures and comparisons with previous years’ expenditures. Some of our owners are leery about what we see. Can we demand an independent audit? If so, what is the procedure? D.B. (via e-mail) Answer: First, I would say that a condominium association routinely providing… Continue Reading
The Florida Condominium Act provides that condominium associations must adopt a budget each year. All budgets must include separate line items for all of the association’s estimated operating expenses for that particular year.
Condo & HOA directors must follow statutory, regulatory and documentary provisions when adopting the association’s annual budget.