Question: Three candidates seeking election to our board would like to hold an informal "meet the candidates" get-together for unit owners. Must the board approve this?
Answer: Notify the board of this gathering and ask for the use of a meeting room. Any expenses, such as the printing of flyers or mailing costs, would be borne by the candidates, not by the association.
Dealing with reserve funds
Question: Last year, after we levied a special assessment for roofing repairs, our members urged that we start a reserve fund, which our condo association has never had. I'm the president. I've put $5,000 into our reserve account, allocated among painting, paving, roofing and elevator. Can the board vote to reallocate the funding? For example, can we apply the full $5,000 this year toward pressure-washing? If that's not possible, can we amend the budget at our budget hearing and move the $5,000 into a contingency fund?
Answer: FS 718.112 (2)(f) discusses the budget and reserves. The board of directors must approve an adequate budget each year. The budget must include three items: roofing, pavement resurfacing and painting. In addition, any component with a replacement value of more than $10,000 must also be included. The board may include any other item that it believes is necessary for the operation of the property, such as the pressure cleaning.
Reserve funds cannot be transferred from one account to another by board vote. That takes approval by the members at a members' meeting. The members do not vote to approve reserves, but at a properly advertised members' meeting they can vote to reduce or eliminate the reserves. That must be done annually.
The board has only one option: to approve a proper reserve budget. If there is no quorum and no proper vote at a members' meeting to reduce or eliminate the reserves, those reserves must be collected.
It is not up to the board to place an item on the agenda at the membership meeting about reduction or elimination of reserves. A member of the association (who could, of course, be a board member) must ask that this be included in the agenda. If there is no request, the board does not have the duty to automatically include this action.
Florida offers a helpful manual you can download free online: Budgets and Reserve Schedules: A Self-Study Training Manual for Beginners. Go to www.state.fl.us/dbpr/lsc/index.shtml then click on "Condominiums" and "Educational Publications."
When a director abstains
Question: I live in a homeowners association governed by Chapter 720 of the Florida statutes. At a board meeting, if a director abstains from a vote without having a stated conflict of interest, how is the vote counted? Is he permitted to abstain?
Answer: Concerning condominiums, the answer is simple. FS 718.111 says that a director present at a meeting must vote on motions, except when there is a conflict of interest. A director who casts no vote must be recorded to have assented to the action. The minutes should record that person as voting for the motion.
In homeowner associations, FS 720 is not as clear. It says only that a vote or abstention will be recorded in the minutes. However, FS 617.0824 says that a director is assumed to have assented to the action.
A conflict of interest means that the director could accrue profit or compensation from the action being voted upon. Just because the director does not like the motion is never an excuse not to vote. For example, if the motion is to approve a contract with a landscape company and the landscaper's father-in-law is a director, he has a conflict of interest and should abstain.
In both condo and homeowner associations, the minutes should record all votes by the directors as being for the motion unless they vote against it or have a valid conflict of interest.
- 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 at toll-free 1-800-226-9101 with questions or requests for materials. Access the Bureau of Condominiums Web site at 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.
Please note that this office provides no information about homeowners' associations. The state has no bureau or department covering those associations.
