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Florida Condo & HOA Legal Blog News & Updates on Condo & HOA Laws & Legislation in the State of Florida

Tag Archives: reserves

HOA Interfund Reserve Transfers Usually Board Prerogative

Posted in Budgets, Reserves & Financial, Reader Q&A

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

Condo and Co-op Budgeting Basics

Posted in Budgets, Reserves & Financial

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

Are You a Prudent Investor?

Posted in Assessment Collection, Fiduciary Duty of Board of Directors

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

Q&A: Is Membership in your HOA required by Statute?

Posted in Operations

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