Condo Association Management Blog

EXuse me. Faulty advise definately is grounds for a law suit. The standard is "should have known"

Under most agreements signed by a board in retaining professional mgmt, the board agrees to indemnify the mgmt except in cases of fraud or "gross negligence." Documents and state statues permit a board to delegate work but not the legal obligations to vendors and committee members. The board itself is elected by the members to be the responsible party. Unfortunately. members including those members who voluntarily accept board positions usually have little comprehension of these obligations.  
 
Management works for the board and all contracts should be submitted to and approved by the board. They may rely on advise of mgmt; however courts hold the board to be the decision makers and carry the obligations and responsibilities of the affairs of the association. Boards determine even mgmt contracts far too often based on price alone without clarifying whether the staff are professionally trained and receiving continuing education. When products, such as roofing materials, are being purchased, the board members may have no information on the various product specifications; the manager may only be aware of information provided by the vendor. Fortunately the Internet allows for research - which the board members should do prior to making major purchases.  
In 2011, board volunteers find themselves facing responsibilities never previously expected by the various governmental parties who created the concept of condominium and homeowners associations. In larger communities such as "over 55" associations, there often are volunteers with business experience who are willing to serve. In the small associations and the majority of condominiums, the members often have little work experience which lends itself to these leadership roles. Courses such as Community Associations Institute offer are helpful.

In too many Associations, the Board is the government, management and employees are the executive arm and the owners/ membership are regarded as ......the official opposition. Oh that it was different1

Our HOA/Condo association in FL are required by law to have an annual audit. However, the assn. has put to the membership in form of a vote to waive this requirement. Is this legal first of all and can they do this every year? We have lived there since 2004 and there has never been an audit!! The board's reason is that the audit is too expensive! 
 
Also, we have in our by-laws that the board cannot make a purchase over $15,000 without the approval of the general membership. They are trying to circumvent the law by making a series of purchases over several years. (Fountains for the different lakes in the community, they cost over $15,000 each so they think that they can spread this over time. Is this Legal?

If the payment for these items is being made from the reserves fund, the proposal to spend the money on that specifiv item must be in the reserves budget schedule that a was passed for the year.  
 
AND, generally speaking, reserves schedule items and amonunts that were passed with the budget, but which later become a higher amount than the maximum allowed by your documents, requires a membership vote to be passed.  
 
Too often, when the board or the manager want a project to go ahead they break the cost down into its component parts so as to get below the maximum amount that is permitted to spend without a vote as stated in your documents.

OUR CONDO BOARD AND THE MANAGEMENT  
 
COMPANY IS BEING SUIED FOR 250.000.000 EACH BY AN OWNER BECAUSE SHE FELL AND RECEIVED A BROKEN WRIST WHILE ASSISTING THE BOARD MEMBERS TO CLEAN UP THE GROUNDS. THE BOARD SAID THEY BEAR NO RESPONSIBILITY BECAUSE SHE VOLUNTEERED HER SERVICES. 
 
CAN THIS BE CORRECT.THANK YOU 
 
CAROLYN