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How do I know if special projects in HOA budget are legal?

Posted on Sun, Jan 09, 2011 @ 09:09 AM
  
  
  
  
Our Florida homeowners association of 720 recently completed its 2011 annual operating budget and included several "special projects" designed to enhance and improve the property. None of these projects includes repairs or replacements, but will improve the aesthetics of certain common areas, and the cost is not necessarily expensive enough to special assess. One homeowner says this procedure of addling these projects to the operating budget is illegal as any new projects must be billed to the owners via a special assessment. Where can I find this answer? Thank you, RDH

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COMMENTS

The authority of the Board to undertake inmprovements should be detailed in the DCCR's. Usually the Board has authority to undertake emgercy repairs without referenceto owners and to undertake repairs and maintenance up to a set $ limit. What is and is not repairs can maintenance can be open to different interpretations. If enhancements are made that do not fall under R&M they should be included in the budget and put to members for approval this assume that the DCCR's do not permit the Board to undertake such work without members authority. 
 
If the Board undertake work without authority of the membership or DCCR's then they would be acting ultra vires and if a HOA a remedy under FL St 720.311 might and I say might as it it best to resolve such matters by agreement.

posted @ Sunday, January 09, 2011 9:33 AM by TonyD


This is an interesting problem -- how much fiscal authority does the Board or the President actually have?

posted @ Sunday, January 09, 2011 10:40 AM by Danny Greenberg


If the Board wishes to include special projects into the budget, they may do so. If the Budget increases more than 115%, then by FL law, the increase must be approved by the Owners. Boards have the financial responsibility to run their BUSINESS as necessary, Condos are Businesses, the Board is elected to run that business. Your documents or by-laws may spell out certain limitations regarding contact limits which may require Owner votes to approve.

posted @ Sunday, January 09, 2011 12:43 PM by cebo


Keep in mind that improvements that consist of a "material change" or change the aesthetics of any part of the condominium or grounds must be approved by the board regardless of budget.

posted @ Sunday, January 09, 2011 9:42 PM by ConsultEngineering


Way too much emphasis here on "legal" versus "illegal" and no mention of acting like a community. Why is the board taking on these improvements without discussing them with the owners? You don't have a legal problem, you have a communications problem.

posted @ Monday, January 10, 2011 6:05 AM by Larry Davis


I especially like Larry Davis' comment,"Way too much emphasis here on "legal" versus "illegal" and no mention of acting like a community." 
 
Absolutely right!

posted @ Monday, January 10, 2011 6:15 AM by Jimmy Knock


My condo. association, at its annual meeting voted 71 to 30 in favor of a properly noted petition. Following the meeting, and without any notice to the members of the association, the B.O.D called for a secret recount. Is this proper? Is it legal?

posted @ Wednesday, February 16, 2011 3:14 PM by Lee Cummings


From NH living in 128 unit condo complex. 
 
Question: There are some, (5) parking lots that are in disrepair regarding paving. The property mgmt co and board want to resurface all areas. Quite an expensive venture. This is what board members are presenting: 
1. Using reserve fund,no $ (where I believe should come from maintenance fund.) Pls correct if I'm incorrect. 
2.) Board wants to do 3 different options: a.) increase condo fees, each year for five years, (with no guarantee condo fee's would be raised after)b.) special assessments of $250/yr over 5 years c.) property mgmt take out a loan now for $450,00.  
 
so, question 1: Can they use reserve fund as pavement already in place? 2: wouldn't the Unit Owners have a voice in this situation? 3: if happens, which would be the most benefit to condo owners of 3 options? 
In addition, the board wants to sent out these 3 options, aforementioned, to condo owners, even before 'bidding out'for costs. 
 
Many Thanks, 
Melinda 

posted @ Sunday, April 03, 2011 9:17 AM by Melinda


Is there a dollar amount limitation whereby the Board can 
spend money arbitrarily without 
members vote/consent? This is for 
unrequired lake view enhancement, dredging to clear away reeds. And it is also destroying wildlife habitations.

posted @ Wednesday, April 27, 2011 4:38 PM by Madeline LaRose


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