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Community Living

New owners on hook for full assessment

By RICHARD WHITE, Special to the Times
Published January 27, 2007

Q: Our condominium's reserves are severely underfunded. The board has levied a special assessment to increase the reserves. We have also just learned that another special assessment will be needed to replace the roof. All units will pay the same assessment. I have lived here less than a year. Other owners have lived here for years without paying into the reserves. Wouldn't it be fair for those who have avoided paying reserves all these years to pay more than those of us who are new owners?

A: Your question underscores the value of funding the reserves annually. When you purchased, you had the right to review the association's documents and financial reports. Had you known the reserves were underfunded, you could have lowered your offer or bought elsewhere.

When you buy real estate, you assume any current and future expenses. Your documents show that you are responsible for the full fees and special assessments.

Once this situation is over, make sure that the board approves an adequate reserve budget annually.

Smaller quorum

Q: Our condo board has seven members, with four required for a quorum. However, only two of us are regularly available, so our meetings are constantly rescheduled. Can we reduce the number of board members from seven to five? We would be a lot more likely to field a quorum of three.

A: Read your documents to see if they require a specific number of directors. If they don't, at the next annual meeting have the members vote to change the number of directors.

You may be able to reduce the number of meetings by establishing operating policies for your manager to follow.

In one association, the board met once a year to approve the annual policies. Every month, the financial report was sent to each director with a brief written report on the month's activity. If an emergency came up, the directors would hold a very brief meeting to vote on the solution.

Leading the meetings

Q: Who officiates at the annual meeting?

A: Normally, the president chairs the meeting and the secretary takes the minutes. However, the members can call for a vote to name another person to chair the meeting and someone else to record the business. Or the president can call the meeting to order and yield the chair to the manager or the association's attorney, a neutral party who knows how to run a meeting and will follow the agenda.

If the members want to nominate someone other than the president to preside at the annual meeting, then immediately after the meeting is called to order, someone should move to elect a chair for the meeting. Then the president can ask for other nominations to chair the meeting, and a voice vote may be used to confirm the motion for each nominee.

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.

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[Last modified January 26, 2007, 11:11:46]