Condo Association Management Blog

I have a similar question, if the association had to generate a letter from the attorney to a homeowner to remind them of their responsibility to put up hurricane, does the homeowner pay the legal fee for that transaction?

First to the original author, as the Board, you are responsible to know what documents are not available to owners. If you had to seek legal advice because you did not know, why should the person requesting the documents (who obviously did know) pay? 
 
To the second person, although the Board paid an attorney to write the letter, the Board themselves could have written the letter.  
 
In both cases, legal fees can only be charged to an owner if there is collections or a lawsuit where the board wins and the judge / arbitrator grants legal fees.

In regard to the documents, this person is requesting copies of checking account statements, copies of the front and back of canceled checks and a copy of the certificate of deposit. We were not sure if it would be prudent to give these copies.

To the OP: If the board needs to seek legal advice to perform their job then the cost of that legal advice is on the HOA.  
 
 
 
To Lucy: If a h/o is in violation of the covenants, any legal costs incurred to get them to cure the violation is generally passed on to the h/o. However, the first letter should be sent by the BOD. Only if the h/o refuses to come into compliance should the board seek legal assistance. A letter to simply remind the h/o that hurricane shutters are a requirement can easily be sent by the board. Some boards too quickly go to the attorney when they can perform the work themselves.

My View: 
 
An Owner has the right to review records as should be stated in By-Laws for the Association. If the Board requires legal advice it should be regarded as a common expense and an owner should not pay for that advice. 
 
There may be some underlying reasons to question whether an owner has access to records that are specific to other units/owners. 
 
We certainly wouldn't want to violate any laws regarding privacy of information

The HOA is probably a not-for- profit corporation. Florida Statute 617.1602 provides for members to access the accounting records of the Association. In my view the documents listed form part of the Association's accounting records and should be disclosed. Why would the Association wish to withhold such information? I cannot see that the owner can be held repsonsible for legal fees incurred because the Board needed advice.

I beg to differ. In our case, a homeowner requested legal decisions which our board of laymen (volunteers) could not answer. He wanted us to waive one of the original covenants relating to deed restrictions. We told him upfront that we would confer amongst ourselves to get a decision made. Further that if we had to consult our attorney for the correct legal answer we will refer the legal charges to him for reimbursement. 
We are also charging for Certified Postage expenses for collection efforts. The financial situation today forces us to split hairs when we waived the small stuff in the past.

Whether or not access to records is stated in by-laws, it is state law. In this case, Florida Law. Under new Florida Laws, new board members are required to attend a certification class which teaches them about the laws and other important information. I recommend any incumbant board members also attend this class, as they are free and can be done over the internet. 
 
At any rate, the Board of the HOA would have known that 720.303(4) covers official records and explains that all financial records of the association are official records which must be provided to an owner upon request.

Carla, 
 
You can "tell" someone whatever you want. Whether or not the person complies and is legally enforceable is another story. 
 
Collection efforts are completely different, as you are able to recoup your costs..but only after properly notifying the owner and legally filing the lien. 
 
If someone were to fight your certified letter charges, although minor, they could probably have the certified letter costs removed.

Our by laws state if issue is brought to trial and you fail to win your case you are responsible for all legal fees.. My condo unbeknown to me hired a lawyer as it related to tax matters and then sent the bill to me. When they were confronted by my lawyer and me silently walked out and paid the bill out of assoc fees.

Joyce, do you have a link to the free internet classes? 
 
As for the post.. There is such a thing called "the cost of doing business" Also, it is my understanding..FLA...all financials are to be made available to homeowners. Only copy cost may apply. Matters of litigation such as lawsuits, violations, foreclosures, liens fall under "privacy act" and are not available to homeowners. I would think general Q&A's from attorney would be made available if the board had nothing to fear. 
 
It isn't surprising the board felt a need to ask the lawyer, exactly why IMO all board members and those wanting to serve should have to take mandatory education classes.

TP, you need to re-read the Official records statute. Foreclosures, liens, collections, etc are still open to owners. Only matters / documents in which a legal opinion was rendered or a meeting with the attorney where legal advice is being requested is not open to owners. 
 
Yes, all Board members should take the courses...especially since now, under current laws "we didn't know" is not an affirmative defense. 
 
I have several listings for educational seminars, but the one I received most often is atwww.condocrazeandhoas.com 
 
They are taught by a lawyer and cover: 
 
"As of July 1st, 2010, newly elected or appointed directors must submit a certificate of satisfactory completion of an educational course approved by the Florida DBPR, or an affidavit attesting that they read Florida Statute 718 and all of their governing documents. Attorney Eric Glazer, host of the weekly radio show Condo Craze and HOAs who has been practicing Florida association law since 1992, has been approved by the division to certify new directors throughout Florida and teach them about their responsibilities under Florida law regarding such topics as Budgets and Reserves, Financial Reporting, Condominium Operations, Records Maintenance, Access to Records, Dispute Resolution and more. In addition, highlights of the new condominium laws will also be taught in detail. Of course, there will also be a question and answer period at the end. All participants will leave with a Certificate of Completion suitable for framing. The course will be taught live at The Hard Rock Hotel and Casino in Hollywood. Coffee and desert will be served and $100.00 casino raffles for attendees will be given away throughout the seminar. BEST OF ALL……..IT'S FREE!  
AND NOW – ALL FLORIDA LICENSED COMMUNITY ASSOCIATION MANAGERS WHO ATTEND WILL RECEIVE 4 CONTINUING EDUCATION CREDITS  
 
 
Our First Seminar is Thursday, October 21st, 2010 at 7:00 p.m. – SOLD OUT 
SECOND SEMINAR: Thursday, November 18th, 2010 at 7:00 p.m. – SOLD OUT 
THIRD SERMINAR: Thursday, December 16th, 2010 at 7:00 p.m. – SOLD OUT 
 
FOURTH SEMINAR: Thursday, January 20th, 2011 at 7:00 p.m. – STILL AVAILABLE 
 
 
Seating is limited. So if you would like to attend and get certified and/or receive continuing education credits, please sign up on our website:www.condocrazeandhoas.com  
 
P.S. – even if you are not yet on a Board of Directors, if you attend, you will still receive certification and will then not be required to attend a course if subsequently elected as a member of the Board. " 

Thanks for the info Joyce.  
 
I didn't realize those documents were available, very interesting,  
 
I would like to expand the original post then, If those documents you've listed are open, then when boards are having discussions at board meetings when homeowners are present the management co suggested using a ID number(each homeowner has been assigned)when discussing matters such as liens or foreclosure status or violations and collection matters that may be issued against homeowners?

In meetings, where boards are talking about collections, past dues and agreeing to send a unit to collection, or suspend voting and usage rights, the board has every right to talk about what unit is being sent by their unit number. 
 
I do NOT recommend that boards post "delinquency lists". However, if a unit owner asks, it must be provided. I.E., a unit owner asks to see aging receivables. I provide them with the AR receivables report, which lists all past due units with a balance by unit number. I also have this same report available at every meeting to any unit owner who requests it can see who exactly is past due.

I have reservations about disclosing the names of owners in arrears. If pushed, if I were a Director,I would get a legal opinion before opening the records to owners. What purpose is served by giving out names? The issue is the amounts owing--not who owes. Persons wanting to know names are merely nosy.

In Florida, with a Condo Association, the Board must give the homeowner a letter stating that the Board is about to incur legal fees and the Homeowner must agree in writing to the fees. 
 
 
 
The Board needs to prove that the legal fees are specific to the homeowner and not part of the general operation of the Board. he State of Florida has a agency that will help the homeowner fight mischarged legal fees. 
 
 
 
Contact the State of Florida Department of Business and Professional Regulations Division of Florida Condominiums, timeshares and mobile homes.

 
 
Board members and prospective Board members of any Florida community association, including condominiums, co-operatives, homeowner associations, timeshares and mobile home communities, are welcome to attend the Community Advocacy Network's Board Member Boot Camp® seminars. 
 
 
 
Board Member Boot Camp® www.BoardMemberBootCamp.com), now in its third year of providing lively and informative training at absolutely no charge to Florida community association Board members and managers, has been approved by the State of Florida to meet tightened educational requirements for all newly elected or appointed Directors of Florida condominium associations. Each participant in CAN's Board Member Boot Camp® receives a certificate of satisfactory completion of an educational course approved by the Division of Florida Condominiums, Timeshares, and Mobile Homes, in compliance with Section 718.112 (2)(d)3, of Chapter 718 of the Florida Statues. 
 
 
 
CAN's next upcoming Board Member Boot Camp® is scheduled to take place: 
 
 
 
Saturday, Feb. 5th, 2011 
 
10:00 a.m. to 3:00 p.m. 
 
Century Village Clubhouse 
 
2400 Century Boulevard 
 
Deerfield Beach, FL 33422 
 
 
 
Advance registration is still open and a few seats remain for the Feb. 5th Board Member Boot Camp®, with interested condo, co-op, HOA, timeshare and mobile home community Board members able to register in advance online atwww.BoardMemberBootCamp.com/register-february or via e-mail to tchristiana@CANFL.com.

Our by laws require prior to any legal action submitting the problem to nonbinding alternative dispute as a prerequisite to judical action. Previously our board had sought a legal opinion on an issue and submitted this bill to me for payment. When my attorney met with their representative they with drew this demand and paid the bill from the HOA which of course means some of this cost would be shared by me as part of association fees.