Question: Eighteen months ago, my wife and I moved into a 31-home neighborhood that offered, among other amenities, lake access. We were immediately served with the third installment of a special assessment of $150 for road repairs, which we reluctantly paid. Today the board approved another special assessment of $500 for a new dock and ramp. We don't even own a boat. Are we required to make up not only a deficit of funds, but a deficit in judgment? Shouldn't the longtime residents who have used, and ultimately worn out, the facilities shoulder the cost of repairs? A letter from the board asks us to bear with the association as it tries to remedy a situation many years in the making. Have we any recourse?
Answer: How many times have I heard owners say, "We don't want reserves; we'll pay for repairs when the time comes"? Facilities do wear out and require replacement or repair, and if you buy into an association with no reserves, you'll have to dig into your pocket. You should have received notice at closing of that pending assessment for road repair. Given the length of time that has passed since then, I doubt you have recourse against the seller or the closing agent. It's your responsibility as buyers to ask the right questions and investigate the financial situation of the association. As unpleasant as it may be, you are obligated to pay the new special assessment. Think of it as an investment in the future value of your home, not a payment for the mistakes of the past.
Free-spending president
Question: Our president is out of control. He makes decisions without discussing matters with other directors, of which I am one. He buys unbudgeted items without board approval. Recently he spent more than $1,000 on a computer; two months ago he bought a golf cart to make property inspections. He contracted with the landscaper to plant new shrubbery and several trees. None of this was discussed at meetings. He says he has the right as president to do all this. How can we stop him?
Answer: Place an item on the agenda, "Discussion of the actions of the president," at a properly called board meeting. The board can then vote to remove this person as president and can elect a new president. The directors can limit spending by the president and refuse to pay for any item they have not approved. The directors can remove the president from the list of authorized check signers. (This will require a trip to the bank to change the signature card.) The board can direct the bank that two signatures are required on all checks. Presidents derive their power from two sources: (a) the bylaws and documents, and (b) the board of directors. Your board has the authority to stop your president's actions.
Bill estate for cleanup
Question: A resident of our condo association committed suicide outside the front entrance of his townhouse. The police advised our president to call a biohazard company to clean up, which he did. Now the company is billing the president, and he wants the association to pay. Some board members think he should be responsible for the bill because he acted alone in engaging the cleanup company. Our manager says that the hazardous material on common property represented a liability, and it's the association's responsibility to clean it up. I think the association should pay but should bill the estate of the deceased resident. What do you think?
Answer: The president should not be held personally liable for this bill. He faced a crisis that required immediate attention. What was his alternative: to leave the scene untouched for several days until a meeting could be called to approve the expense? How would residents and visitors have reacted to that? Your president displayed good leadership in taking prompt action. Contact your lawyer about approving a special assessment against the unit, to be paid by the deceased owner's estate.
- Richard White is a licensed community associations manager. Write to him 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 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.
Please note that this office provides no information about homeowners' associations. The state has no bureau or department covering those associations.
