Owners end up paying for lax enforcement
By RICHARD WHITE
© St. Petersburg Times
published March 1, 2003
Question: We are a small, self-managed homeowner association. In the past, our boards enforced the rules and regulations, but the current board permits violations. A past board member told me that lawsuits are not a concern because our association is incorporated. Does incorporation protect the homeowners?
Answer: In general, yes, homeowners are protected, but in fact, you will pay. Suppose someone sues the board over rule enforcement. Someone must pay the association's legal costs. Typically that comes from your insurance, but insurance companies don't like to spend money, and you'll find your insurance rates rising in the future. That means your monthly maintenance will increase.
Suppose someone were injured or killed, allegedly through the association's failure to enforce rules, and the association was sued for negligence. Insurance will cover costs up to a point, but if a jury awarded damages in excess of that figure, members would be responsible for payment. Here's a real-life example: In a gated community in a high-rise area, the gate guard granted access to a group of criminals, who proceeded to rob and murder a resident. The prosecution showed that the guard was negligent in allowing the criminals in and also showed that the association did not properly supervise or train the guard and did not have proper "post orders," i.e., procedures for employees on duty. The jury awarded $2-million. The association's coverage was for only $1-million. The second million had to be paid by owners through a special assessment.
Keep the balloting secret
Question: What would you suggest as a safe, tamper-proof location for our condominium ballot box? Before the election, how can we be assured no one enters the box? Who should have access to the key that opens the lock? Last year we used dual locks, but it still appeared that we had ballot tampering.
Answer: Purchase a metal tool box or a small metal filing box that cannot be easily opened. Cut a small opening that will accommodate only a ballot envelope, or install a mailbox slot in the top of the box. You will need a good key lock, not a combination lock, to secure the box. Protect the key to ensure that only proper persons have access. It may require two locks to ensure its security and integrity. You may need to buy a new lock or locks each year. You can have your manager or secretary hold the key in a sealed envelope until the election. Put the box in a public area for anyone to view, and secure it so the box cannot be moved. It may be placed in the lobby of the office and locked up at night when the office is closed, but it should remain exposed for members to view when the office is open.
You can purchase numbered seals that will indicate if the box has been opened. One kind is called a railroad or truck seal, a metal or plastic numbered seal that can be purchased from a trucking company. You can also purchase a clamp-type seal from an office-supply store. The seals do not prevent the box's being opened, but they will show evidence that it has been tampered with.
Used in conjunction with a padlock, a seal will provide the best security. The election system established by the Condominium Act should be strictly followed.
A change of accounts
Question: We are thinking about having a general contingency reserve rather than individual accounts. What do we need to do to make this change?
Answer: The Condominium Act requires that the board establish an adequate reserve budget for painting, paving and roofing. The board must also reserve for any additional entity that has a replacement value of over $10,000. The members can vote each year, at a members' meeting, to change the reserves. Homeowner associations do not have the same reserve requirements, and the board could create a contingency reserve budget account.
-- Write to Richard White, c/o Community Living, St. Petersburg Times, P.O. Box 1121, St. Petersburg, FL 33731; or e-mail him at CAMquestions@att.net. Please include your name and city.
Readers may call the state Division of Condominiums Bureau of Customer Service at (800) 226-9101. with questions or requests for materials. Access the Bureau of Condominiums Web site at http://www.state.fl.us/dbpr/lsc/index.shtml; or write to Bureau of Customer Service, 1940 N Monroe St., Northwood Centre, Tallahassee, FL 32399-1032.
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