Maintenance, repair and upgrade of the common areas of a community can be costly, and reserve accounts can be a great planning tool for large projects. In 2007, Section 720.303(6) of the Florida Statutes was added to the Florida HOA Act establishing procedures and rules related to reserves if a) they were originally established by… Continue Reading
Question: My condominium association has no reserve funds for our roof. Every year at the annual meeting, the board asks the owners to waive the reserve funding and every year the owners vote to waive the reserves. Now we need a new roof for the building and the board is telling the owners that there… 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
It goes without saying that every association must adopt a budget each year reflecting the estimated income and expenditures of the association. The Florida Administrative Code requires the budget adopted by the Board of Directors to contain some basic features. The budget must contain the beginning and ending dates. Adopting a budget for the “2015”… Continue Reading
Question: The board of directors of my homeowners’ association has decided to “roll over” the surplus funds from our 2013 budget into a non-statutory pooled reserve account. Last year they overstated the amount necessary for the budget in order to have a surplus and I believe they are doing the same thing this year. It… Continue Reading
Question: I am in the process of selling my condominium unit and want to know if it is appropriate for me to request that the buyer refund me my portion of the reserve funds I have paid at the time of closing? Is this something that is covered in the condominium statute? J.D. (via e-mail)… Continue Reading
The Editorial Board of the Orlando Sentinel, the largest newspaper serving the Orlando area, issued an editorial this week urging Governor Scott to veto HB 1013 which will eliminate warranties for community common areas.
Investing the Association’s Funds? If so you should be familiar with the Prudent Investor Rule. Does your association have a written policy with regard to investment of association funds? If so, does the board of directors monitor the investment to ensure compliance with the policy, and, is the policy reviewed and updated from time to time?… Continue Reading
Community association board members and CAMs are encouraged to attend this timely & free educational session led by industry experts.
Condo & HOA directors must follow statutory, regulatory and documentary provisions when adopting the association’s annual budget.
Borrowing money is an avenue open to many Associations. In order to ensure the best loan possible for the Association, certain clauses in the Agreement and Promissory Note must scrutinized.
A blog reader recently posed a question containing the following statement: We are a HOA of 8000 parcels, and we do not have Statutory required membership or developer reserves. Membership (mandatory or voluntary) in an homeowners association (HOA) is not regulated by Statute. Section 720.301(9), Florida Statutes defines an “homeowners’ association” or “association” subject to the… Continue Reading