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Community Living: Members can limit reserves
By RICHARD WHITE Question: Two years ago we were told our reserves were fully funded. Now we learn they are substantially underfunded. The board is asking for a proxy to allow partial funding. What kind of membership vote is required to allow for partial funding? Isn't it the board's responsibility to ensure we are financially sound, which includes a reasonable budget and properly funded reserves? Answer: Reserves should be calculated each year. They should be estimated to best replacement costs available. The state places the obligation on the board of directors to calculate adequate reserves accurately. Once the reserve budgets have been approved by the board, the members can vote to reduce or eliminate the reserves at a properly notified members' meeting where a quorum must be present. Let board decide on repairsQuestion: We are contemplating a special assessment and are concerned about who has the right to vote. We are planning to redo our catwalks, and the board has approved a special assessment. Can the board approve the expenditures and assessment or do we have to get the approval of the entire complex? Answer: The board has the duty to maintain the community. It has the responsibility to make repairs and to assess for the funds necessary. Members do not vote on maintenance obligations and assessments to pay for the repairs; that is a duty of the board. Some documents restrict spending by the board and do require members' approval. In these associations, the documents may prevent the board from discharging their responsibilities. In these associations, I would seek legal advice to change the documents and place those responsibilities on the board. Laws on senior communitiesQuestion: Where can I find the laws about 55-plus senior communities? Answer: All 55-plus communities must now be registered with the state every two years. The primary 55-plus laws were initially federal rather than state. Check the Federal Register, Part IV, 24 CFR Part 100. The Florida statutes that address adult communities can be found in the Fair Housing Act, FS 760. - Write to Richard White, c/o Community Living, St. Petersburg Times, P.O. Box 1121, St. Petersburg, FL 33731. Sorry, he can't take phone calls or provide personal replies by mail, but you can e-mail him at CAMquestions@att.net. Please include your name and city. Questions should concern association operations; legal opinions cannot be offered. For specific legal advice, contact an association attorney. Readers may call the state Division of Condominiums Bureau of Customer Service toll-free at 1-800-226-9101 with questions or requests for materials. Or write to Bureau of Customer Service, 1940 N Monroe St., Northwood Centre, Tallahassee, FL 32399-1032. Please note that this office provides no information about homeowners' associations. The state has no bureau or department covering those associations. You can access the Bureau of Condominiums Web site at www.state.fl.us/dbpr/html/lsc/co_page.html.
 © 2006 • All Rights Reserved • St. Petersburg Times
490 First Avenue South • St. Petersburg, FL 33701 • 727-893-8111 
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